LONDON Broker Recommendation Round up- 22nd October 2009

22.10. 2009, 13:46

Broker tips: Pub groups, Aviva, Debenhams The decision by the Office of Fair Trading (OFT) not to investigate the beer tie which forces pub tenants to buy their beer from their landlords has prompted a surge in the share prices of the pub groups, and this presents a good opportunity to reduce exposure to cash-strapped Enterprise Inns, Charles Stanley reckons. ‘The greatest beneficiaries of this announcement are those pubcos with the most significant tenant/leased estates, specificallyPunch Taverns and Enterprise Inns,’ said Charles Stanley analyst James Dawson. Panmure Gordon agrees with this analysis, listing Enterprise and then Punch at the top of a list of pub groups ranked in order of percentage of group earnings from leased and tenanted earnings. Marstons, Greene King and Fuller, Smith & Turnerwere ranked third, fourth and fifth in the list. Charles Stanley remains a buyer of Punch Taverns stock, ‘whilst acknowledging the operational issues that the company must still address.’ It remains a seller of Enterprise Inns, however, and recommends ‘investors should take the opportunity in this stronger market given its above sector multiple rating,’ Broker Recommendations Date Company Name Ticker Broker Name Recommend Price Old Target Price New Target Price Broker Change 22-Oct-09 Aegis Group AGS Deutsche Buy 113.00p 120.00p 135.00p Reiteration 22-Oct-09 Anglo American AAL Goldman Sachs Buy 2,278.00p 2,895.00p - Reiteration 22-Oct-09 BHP Billiton BLT Citigroup Buy 1,792.50p 2,000.00p - Reiteration 22-Oct-09 BHP Billiton BLT UBS Buy 1,792.50p 2,000.00p - Reiteration 22-Oct-09 BT Group BT.A UBS Sell 138.30p 100.00p - Reiteration 22-Oct-09 Cadbury CBRY ING Barings Hold 794.50p 525.00p 850.00p Reiteration 22-Oct-09 COLT Telecom Group S.A. COLT Astaire Securities Buy 126.00p - - Reiteration 22-Oct-09 Enterprise Inns ETI Panmure Gordon Sell 139.60p 70.00p - Reiteration 22-Oct-09 Greene King GNK Panmure Gordon Hold 423.00p 500.00p - Reiteration 22-Oct-09 HSBC Holdings HSBA CSFB Outperform 689.60p 720.00p - Reiteration 22-Oct-09 RSA Insurance Group RSA Bernstein Market perform 131.20p 135.00p - Reiteration 22-Oct-09 SABMiller SAB UBS Buy 1,635.00p 1,700.00p - Reiteration 22-Oct-09 Smiths Group SMIN UBS Buy 925.50p 950.00p 1,150.00p Reiteration 22-Oct-09 Standard Chartered STAN Cazenove Neutral 1,584.50p - - Reiteration 22-Oct-09 Vodafone Group VOD Citigroup Buy 137.75p 180.00p - Reiteration Other Company Recommendations Today Amlin, Carillion, Carluccio's, Cluff Gold, DS Smith, Experian Group, FirstGroup, Fuller Smith and Turner, Gulfsands Petroleum, Hargreaves Lansdown, Home Retail Group, Home Retail Group, Home Retail Group, IG Group Holdings, IG Group Holdings, International Personal Finance, JD Wetherspoon, Lonmin, Luminar Group, Marston's, Mortice Ltd, National Express Group, Prezzo, Punch Taverns, Shire Plc, Sports Direct International, The Clapham House Group, Vectura Group, William Hill,WSP Group, Xstrata, YouGov