Broker tips: Experian, Balfour Beatty, Anglo American, Afren

Broker Liberum reiterated its ‘buy’ rating on Experian after the information services firm announced an unexpected £394.7m buyback, which amounts to 5% of its stock.

“Experian’s sustainable superior cash generation remains a key strength,” Liberum said.

UBS has lifted its target price for Balfour Beatty’s shares from 200p to 235p, but maintained a ‘neutral’ stance on the infrastructure group.

“It is rare that shares rally 10%+ after a profit warning but in Balfour Beatty's case the assumptions seems to be that the worst is now over and new management can eliminate what has been extremely poor performance in the UK. We are inclined to give the benefit of the doubt for now but see relatively limited value at the current share price level,” the bank said.

Broker Shore Capital said it expected a “negative market reaction” after mining giant Anglo American reported a decline in output in the fourth quarter.

"Not really what we wanted to see, particularly given the general weakening in commodity prices,” it said in a note on Wednesday.

Broker Westhouse Securities has cut Afren from ‘neutral’ to ‘sell’ and slashed its target price from 90p to just 2p, saying that the risk of owning shares in the struggling oil producers is too high.

The broker said that, on its current estimates, Afren will breach its financial covenants with its banks this year if capital expenditure levels are maintained. “It all hinges upon successful debt re-negotiation and a potential equity raise means a material dilution to current shareholders,” Westhouse said.