BEST OF THE BROKERS

CARPHONE WAREHOUSE
Morgan Stanley upgrades its price target for Carphone Warehouse to 185p from 173p citing its decision to buy Tiscali’s UK operations. It sees Carphone as an “attractive” investment, which remains one of the only retailers (alongside Debenhams) that it believes is undervalued by the market. It notes demerger plans are also now well advanced.

EXPERIAN
JP Morgan initiates coverage of Experian at “overweight”. In spite of the weak economy hitting demand for its global information services, it notes its revenues have proved “remarkably resilient” and expects this to persist. It says buying the shares is an indirect way to benefit from eventual improvement in financial and credit markets, and its shares warrant a premium.

TOMKINS
Credit Suisse advises buying into engineer Tomkins post its recent trading update and any resulting share price weakness. It sees its valuation as “attractive” and expects it to respond early to any improvement in the economic background. It says even in a worst-case outcome on US carmakers Chrysler and GM’s situations, Tomkins should not be effected.