BEST OF THE BROKERS

VODAFONE GROUP
Citigroup analysts returned from travelling with Vodafone managers to meet investors and were no less positive on the structural opportunity at the group than before. The broker remains a “buy” on the stock with a target price of 118p, but argues that targets could be increased, perhaps in November. The focus remains on shareholder remuneration rather than investment, City says, though it does note potential adverse movements in foreign exchange.

LONDON STOCK EXCHANGE
Goldman Sachs disagrees with its peers on the rating of the London Stock Exchange and, rather than a “sell” or “neutral”, it has the group on its “conviction buy” list. Goldman believes that the group’s loss of market share post-regulatory change will be offset by growth in the total value traded – that is, the LSE will get a smaller slice, but of a bigger pie. The broker thinks there is a return potential of 37 per cent on the shares, with a price target of 1,000p.

RYANAIR
Ryanair management’s guidance for an 2010 yield decline of 10 to 15 per cent is excessively cautious, said Royal Bank of Scotland, raising its guidance for 2010 full year net earnings by nine per cent to ¤484m (£418m). RBS has a “buy” on the stock with a target price of ¤4.25, up from ¤4, saying that the company is “crying wolf”. The broker also believes that the need for heavy discounts will ease in peak periods.