Broker tips: Glaxo, IHG, Retailers

5th Sep 2013 11:25

Panmure Gordon has maintained its 'buy' recommendation for pharmaceutical giant GlaxoSmithKline but admitted that it was disappointed with the firm's setback on its potential new skin-cancer treatment.The broker explained that MAGE-A3 is a theraputic cancer vaccine - "the holy grail of the industry" - but was seen as very high risk given that it is an unproven area. As such, consensus forecasts for this product are heavily risk-adjusted so the bad news should not prompt any major downward revisions.InterContinental Hotels Group (IHG), the owner of the Crowne Plaza and Holiday Inn franchises, saw shares jump after UBS upgraded its rating from 'neutral' to 'buy' and added the stock to its 'Most Preferred' list.The Swiss bank highlighted alleviated concerns about pipeline after the company added more rooms in the first half. It also pointed out improving revenue-per-available-room (RevPAR) growth in China and continued strong growth in the US.Nomura has said that the recent hot summer weather will likely drive updates from a host of companies this month despite improving macro trends in the UK.For example, Nomura pointed out that the heat most likely helped fashion retailer Next sell more items at full price and drove up seasonal sales at DIY group Kingfisher, but flattened demand for consumer electronics at Home Retail and for home furnishings at Dunelm. In spite of the overall 'bullish' stance on the wider European sector, Nomura only has a 'buy' rating for UK-listed Home Retail, the owner of Argos and Homebase chains, saying that strong seasonal sales should offset weakness in the electricals and indoor home categories.BC