BEST OF THE BROKERS

J SAINSBURY
It’s the end of the beginning for J Sainsbury, not the beginning of the end, said analysts at Morgan Stanley as they upgraded the stock from “equal-weight” to “over-weight”. The broker expects the retailer to deliver premium like-for-like growth for at least 12 months, and has set a price target of 375p, which is up from 320p.

GREENE KING
Deutsche Bank said that, following the success of Greene King’s rights issue, the pub business is now better placed to acquire assets in a market where it can provide increased liquidity and where quality pubs are becoming available at affordable prices. The broker rates the stock as a “buy”, with a price target of 530p.

NORTHERN FOODS
Northern Foods’ results were better than Royal Bank of Scotland expected, and the final dividend was held. The broker has a “buy” recommendation on the shares, but highlights that management guidance was cautious and therefore downgrades its forecasts. But RBS sees the up to seven per cent yield at Northern Foods as attractive.