Broker tips: Gold miners, WPP, 888, Shanks

16th Oct 2013 11:50

Nomura said it has been 'somewhat perplexed' by gold's recent weakness during the US government shutdown, but said it was positive on the outlook for gold prices until the end of the year.Nevertheless, the broker has downgraded its ratings for gold mining peers Polymetal and Centamin after both stocks reached its target prices. "However should gold prices find support again, we would expect these companies, along with Randgold and our top pick African Barrick Gold (ABG) to outperform," Nomura said.Panmure Gordon has kept its 'buy' rating for advertising and media giant WPP, highlighting good read-across from sector peer Omnicom.WPP's share price rose strongly on Tuesday after Omnicom reported third-quarter organic revenue growth of 4.1%. Panmure analyst Alex DeGroote highlighted that this is an acceleration of the first-half trend with growth equalising out to 3.2% for first nine months of 2013, which bodes well for WPP ahead of its own third-quarter figures on October 24th.888 Holdings is worth a 'buy', according to Daniel Stewart & Company, after the online gaming firm's third-quarter results on Wednesday.Equity Analyst Michael Campbell said that the stock's valuation is towards the top end of the peer group range. "However the group has $47m of firepower, (ex-customer liabilities), with which to further grow the business. Furthermore, we believe the business is well placed for New Jersey market which is expected to switch the lights on at the end of November."Jefferies has raised its rating for Shanks from 84p to 100p, hailing the firm's exit of its loss-making UK solid waste business.However, the broker kept its 'hold' rating, saying that the company's Benelux solid waste operations continue to face challenging markets. "Whilst recognising the on-going benefit of the Shanks investment programme and structural cost saving actions, we do not expect any meaningful Dutch construction sector recovery until 2015."BC