Saturday's share tips

By THIS IS MONEY
Updated:

 

Here are the broker buys and broker sells published on the City pages of today's newspapers. First, the Daily Mail:

SG Securities says buy British Telecom at 697p in anticipation of outperformance from a strategic rethink. It says the firm's sum-of-the-parts valuation is 1347p, almost double current price.

Dresdner Kleinwort Benson says buy Travis Perkins at 548p as it says that while Travis was a south-eastern builders supplier the Keyline and Sharpe & Fisher acquisitions have turned it into a national player.

Credit Lyonnais Securities says buy Sage at 480p as it has shown its ability to grow both organically and through acquisition.

Teather & Greenwood says buy Chorion at 37p as with net cash, the firm has the finances and management expertise to develop the late-night bars business and unlock value though an expected demerger next year.

SG Securities says sell Marks & Spencer as it feels the shares underperform. It says weak September sales cast a shadow over this month and next. Current-year profits have been downgraded from £520m to £480m, against last year's £517m, suggesting fair value at 165p.

Merrill Lynch says sell N Brown at 315p as Zendor's revenues are building more slowly than first anticipated. The rating does not allow for disappointment.

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