BEST OF THE BROKERS
BAE SYSTEMS
Bank of America Merrill Lynch rates BAE Systems a “buy” saying that the firm has three key areas which will support its long-term growth above the US and UK defence spending rate. The broker saw long-term value in the shares, but also potential further earnings downgrades. It reduced its price objective for the stock to 392p.
LAIRD
UBS initiated coverage on mobile component manufacturer Laird with a “buy” rating and a target price of 200p. The broker believes that, despite operating towards the lower end of the value chain, the company’s strong customer relationships and flexible cost structure result in a healthy margin performance.
DECHRA PHARMACEUTICALS
Dechra Pharmaceuticals reported preliminary results for the year ending 30 June which were in line with Panmure Gordon’s forecasts, but above consensus. The broker remains positive on the stock, with a “buy” recommendation and a price target of 550p, saying it is particularly impressed with Dechra’s European operations.