City firm Numis upgraded Melrose PLC (LON:MRO) to 'add' from 'reduce' on the back of its acquisition announced yesterday of US ventilation and home security products maker Nortek.
In a post Brexit vote flurry into a potential new era, the UK listed turn-around firm is paying £2.154bn - equating to a 37% premium.
The deal will be funded through a 12 for 1 rights issue at 95p to raise £1.6bn.
Melrose shares gained ground yesterday significantly as the market reacted to the news, adding over 34% in London.
Numis analyst David Larkam said it appeared to be a good deal in terms of price.
He targets 600p a share compared to 569p currently.
Elsewhere, broker Liberum is upbeat on consumer goods giant Reckitt Benckiser PLC (LON:RB.) raising the stock's target to 8400p from 8000p and repeating a 'buy' rating.
In a wider sector note on consumer Staples, the broker recommends staying long (holding on to) on shares in the sectior and favour those that are helping themselves.
Post the Brexit vote, it expects shares in the sector to remain in high demand, it said.
"We expect Consumer Staples EPS growth to significantly outperform the broader market despite lacklustre consumer demand, intense competition and disinflationary trends.
"Valuation will remain elevated reflecting the scarcity of visible, resilient growth stories in the market. Stock picking remains critical – we continue to favour self-help stories," it said.
Among the key 'buys' are Associated British Foods PLC (LON:ABF), which it rates 'buy', targeting 3,600p and Tate & Lyle (LON:TATE), which it rates a 'buy' and targets 790p.
Elsewhere, German bank Berenberg has downgraded British American Tobacco (LON:BATS) to 'hold' from 'buy'.