Broker tips: StanChart, BP, BG Group, UK engineers

Analysts at Numis Securities and Investec have cut their target prices for shares of Standard Chartered after the emerging markets-focused bank warned that second-half underlying profits would be below last year's.

Numis has trimmed its target from 1,400p to 1,200p and downgraded its rating for the stock from 'add' to 'hold', while Investec lowered its target from 1,450p to 1,350p, but kept a 'buy' recommendation. While costs and impairments were higher than expected, Investec said that StanChart had "encouragingly" delivered a slightly-better-than-expected revenue performance, with turnover up 1% year-on-year.

Investors willing to take on a little risk should consider shares of BP, according to The Share Centre, which recommended the stock as a 'buy' on Tuesday following the oil major's third-quarter results.

The broker said that those looking for capital growth and income should be buy the stock, which trades "favourably against it peers" with a price-to-earnings multiple of just nine.

Natural gas producer BG Group is making progress and the share price may have hit a trough, but third-quarter profits missed forecasts and investors are waiting for certainty on the outlook and value delivery, according to broker Charles Stanley.

Analyst Tony Shepard said the stock is currently "fairly rated" and investors may have to wait for the arrival of new boss Helge Lund before a turnaround.

The recent sell-off in the UK engineering sector has been overdone, according to UBS, which predicts that trading should improve in the near term.

As part of its review of the sector, UBS has upgraded Rotork from 'neutral' to 'buy' and named Bodycote, Fenner and Spirax-Sarco as other top picks.