Broker tips: Shire, Tesco, WH Smith, Bwin.party

Panmure Gordon has upgraded its rating for pharmaceutical group Shire despite the news that US rival Abbvie has recommended investors to vote against its $54bn takeover.

The broker, which slashed its target price for the shares from 5,300p to 4,200p as a result of Abbvie's comments, said that Shire's fundamentals remain strong and the stock's valuation "now looks attractive".

Don't expect Tesco to announce a major change in strategy alongside its first-half results next week, say analysts at Deutsche Bank, as the supermarket chain lets its new management team settle in after the recent management revamp.

The German bank has reiterated its 'hold' rating on the stock with a 220p target price ahead of its interim report on 23 October. "We don’t expect management to commit to a new strategy at this point," said analyst Niamh McSherry.

WH Smith's impressive annual results are likely to drive upgrades for the books-to-stationery retailer, according to Canaccord Genuity, which maintained its 'buy' recommendation and 1,225p target price for the stock on Thursday.

Canaccord said: "We remain buyers for the strong growth prospects of Travel, now bolstered by a concerted push into international markets, and the continued strength of cash generation, which underpins a good dividend yield and further accretive share buybacks."

Peel Hunt said it is seeing "signs of life" at Bwin.party after the gambling group reported its first annual growth in quarterly revenues in over a year.

The business is not yet firing on all cylinders, the broker said, but it does represent the "most encouraging quarter for some time, and potentially the point at which the recovery builds". Peel Hunt maintained a 'hold' rating for the stock.