Broker tips: HSBC, Sage, IHG

9th May 2012 11:10

Nomura has reiterated its buy recommendation and 650p target price for global banking giant HSBC, saying that consensus forecasts may increase slightly following the firm's first-quarter results yesterday."The HSBC Q1 figures are unlikely to change perceptions of the group materially, in our view. On the plus side, full-year consensus expectations are likely to nudge upwards and there are real signs of cost control, there was good growth in profits and revenues in the Asian businesses," the broker said in a research report this morning.Sage's interim results were broadly in line with expectations but raised some questions over revenue growth, according to Merchant Securities which has reiterated its hold recommendation and 300p target price for the stock this morning."These results are likely to be taken slightly negatively overall, due to the evident lack of growth. Recurring revenues have grown, and so the underlying strength of the business remains intact," he said.Nevertheless, Phillips did not that weakness post-results could present a buying opportunity, in spite of the broker's neutral recommendation.Investec has reiterated its buy rating and 1,700p target price for Crowne Plaza and Holiday Inn owner InterContinental Hotels Group (IHG) after first-quarter numbers came in well ahead of its forecasts."IHG has continued to benefit from an exceptionally strong continued worldwide recovery in hotels performance, as well as its status as the largest global operator with key brands," said analyst James Hollins."The pipeline and partner interest in core and emerging markets estate growth remains robust despite an ongoing difficult hotels financing market," he said.BC