To appear in Best of the Brokers, email your research to notes@cityam.com

CLOSE BROTHERS

P 1,050 17 Mar 896 1,000 950 900 13 Mar 14 Mar 16 Mar 15 Mar 17 Mar

Analysts at Peel Hunt have slashed their earnings per share estimates for Close Brothers Group by 11 per cent for the full year 2024 and 10 per cent for 2025, after "sluggish loan growth, lower expectations for net interest margin and a higher tax rate" in its first half earnings last week. They say a "long-awaited credit event that could trigger a lending opportunity" has yet to materialise. They say hold the stock and set a target price of 977p.

SAGA

P 155 150 145 140 135 130 125 17 Mar 124.2 120 13 Mar 14 Mar 16 Mar 15 Mar 17 Mar

A recovery in Saga's cruise business looks set to boost the over-50s specialist in the long run but profits remain weighed down by the firm's lacklustre insurance offer, brokers at Peel Hunt say. They have slashed their forecasts and say a potential sale of the insurance underwriter "remains a priority and should bring welcome relief ahead of the 2024 bond redemption". They set a target price of 130p and say hold the stock.

(c) 2023 City A.M., source Newspaper