[City AM] BEST OF THE BROKERS

DIAGEO
Nomura rates the drinks giant as a “buy” with a target price of 1261p, and expects the company’s full year results to confirm the revenue increases seen in its third quarter. The broker sees further M&A prospects for the brand in global spirits, following acquisitions earlier this year in Turkey and Vietnam. A more aggressive focus on growth and costs could offer further upside to estimates.

HAYS
Credit Suisse rates the recruitment group as “outperform” and cuts its target price to 135p from 140p after its fourth quarter trading update. The broker reduces its full year earnings per share estimates by four per cent to reflect the increasingly challenging UK market, which it thinks will remain difficult for the next couple of years.

ARCELOR MITTAL
ING rates the steel miner as a “buy” with a a target price of £32, ahead of its second quarter results tomorrow. The broker expects earnings before tax of $3.2bn (£1.96bn), and sees comfort in the company meeting consensus expectations due to a rise in steel production and flat raw material prices, plus management guidance that selling prices will more than offset cost increases.

 

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