Broker tips: Ashmore, Miners, Aegis

12th Jul 2012 11:08

Shares in fund management Ashmore took a battering on Thursday morning after its fourth-quarter statement but Peel Hunt has maintained its 'buy' recommendation and 440p target price for stock saying that it still offers 'long-term structural growth'."Given the slightly lower period-end AuM, and recent performance, we would expect to reduce our forecasts for the next two years," said analyst Stuart Duncan.The broker said that it expects to reduce its target price but has maintained a positive view on the stock due to the "significant growth opportunity over the longer term as asset allocations to EM products continue to increase, although in the short term enthusiasm will be tempered by the current macro backdrop."Credit Suisse has revised its target prices across the mining sector lower after cutting its commodity price estimates. The broker said that decelerating global growth and falling risk appetite have taken their toll on commodity prices recently.The broker labels Rio Tinto as its top pick from the large caps and has maintained an 'outperform' rating. As for BHP Billiton, Credit Suisse believes that its valuation is not compelling and reckons that the company may disappoint on capital expenditure/cash returns over the next year. The stock has been downgraded from 'outperform' to 'neutral'.Investec has hiked its target price for media and digital communications group Aegis from 195p to 240p to fall in line with the offer price by Japanese advertising agency Dentsu. The broker maintained its 'buy' recommendation on the stock today."Dentsu's proposed agreed bid at 240p for Aegis looks a very full price in our view and we think rival agencies are unlikely to counter bid," Investec analyst Steve Liechti.Liechti said that the price reflect Aegis's position as "one of the last remaining mid-size agency groups, but with enough critical mass to make a difference to the likes of Dentsu. It also reflects AGS' strong business momentum, simplified structure and digital assets."BC