Broker tips: Barratt, Majestic, Tarsus

13th Jun 2011 12:58

There's still further to go in Barratt Developments' share price, claims Panmure Gordon, which raises its target price on the stock to 158p, from 147p.Despite a strong rally in the share price over the last half year, the broker said that the housebuilder remains its key sector pick and keeps its 'buy' rating on the stock.On 11 May, the company announced that it had completed a debt refinancing which will provide around £1bn of committed facilities up until May 2015, though some facilities will be available through to 2021. The broker said that the increase in the target price reflects this.Despite Majestic Wine's full-year results beating finnCap's predictions, the broker downgrades the wine retailer from 'buy' to 'hold', saying that the share price is now up with events.Majestic reported a pre-tax profit of £20.3m for the 52 weeks ended 28 March 2011, better than the £19.5m the broker was forecasting. Earnings per share were 1p ahead of estimates at 22p."However, it appears unlikely that the increase will be sufficient to generate a target price above the current share price. We therefore downgrade." The target price is kept at 440p.Business-to-business media group Tarsus has had its target price scaled by from 183p to 178p by Singer Capital Markets, but the broker keeps its positive stance after the group's recent Turkish expansion.The group's fundraising has been approved and the acquisition of Istanbul-based exhibition business IFO (announced in May) is now complete, the broker notes."These actions expand the breadth and depth of the group, enhance growth potential and reduce leverage," said analyst Johnathan Barrett."We adjust our Target Price to reflect the impact of the acquisition and the dilutive effect of the fund raise which was for both the acquisition and debt reduction purposes." Nevertheless, a 'buy' rating is retained. ---BC