Broker tips: Lloyds, Man Group, William Hill

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Broker tips: Lloyds, Man Group, William Hill

Fri, 01 March 2013
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Broker tips: Lloyds, Man Group, William Hill
Lloyds Banking Group Quote more

Price: 69.28

Chg: -0.27

Chg %: -0.39%

Date: 17:04

FTSE 100 Quote

Price: 7,243.70 Chg: -27.67 Chg %: -0.38% Date: 16:54

Canaccord Genuity has retained its 'hold' rating and 35p target price for UK banking group Lloyds after a mixed set of full-year results on Friday morning.

As for the stock's valuation, Canaccord said that unless the regulator allows an earlier resumption of ordinary dividend - something that is likely "some way off" - "we do not see much valuation support/upside at current share price levels".

UBS said it is 'waiting for more visibility' on key stock drivers at Man Group as it downgraded the asset manager from 'buy' to 'neutral' on Friday morning.

The broker said it is waiting on number of potential catalysts that could deliver further upside but these are quarters out. These include: a deal with strong downside protection; a reduction in regulatory capital given balance-sheet dynamics; an improvement in investor sentiment; and an improving performance of the AHL fund.

Panmure Gordon has reiterated its 'buy' rating and 436p target price for HIgh Street betting shop William Hill after digesting the company's full-year results, the buy-out of its online partner and a rights issue.

The shares are trading at 12 times 2014 earnings, compared with sector peer Paddy Power (price-to-earnings [P/E] multiple of 20.7) which has a similar earnings profile.

"We think the stock will re-rate strongly over the coming months and our 436p target price only implies a 2014E P/E multiple of c14x."


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