Broker tips: AstraZeneca, Pennon, Wetherspoon

13th Sep 2013 12:57

Jefferies has slashed its price target for pharmaceuticals group AstraZeneca (AZN) from 3,200p to 2,850p on the back of its concerns about the company's position in the respiratory market.The broker, which maintained its 'hold' rating for the stock, said that AZN's respiratory portfolio "does not look well equipped" to deal with the evolving respiratory market, which is likely to see pressure from new entrants, treatment modalities and the increasing presence of value brands and generics.The share price of utilities group Pennon was dampened on Friday morning after a downgrade by Credit Suisse from 'neutral' to 'underperform', which raised concerns about the company's waste-management business, Viridor. The target price for the stock was trimmed from 670p to 610p.In a research report, the bank said it is increasingly concerned that pricing pressure could materialise on Viridor's energy-from-waste (EfW) facilities, given that supply is increasing and demand is falling. "We see the market pricing in c50% value accretion on Viridor's pipeline (vs Credit Suisse forecasts of c10-15%), and overlooking material downside risk," it explained.Investec has maintained its upbeat stance for pub group JD Wetherspoon after the company reported 'good' annual results and a 'strong start' to the new financial year."In our view, Wetherspoon remains the standout quality pub operator in the sector, with attractive assets, dependable returns and a sensible roll-out programme that is forecast to drive a double-digit medium-term compound annual growth rate in earnings," said analyst James Hollins.BC