Broker tips: Petropavlovsk, Ladbrokes, Retailers

6th Jun 2012 11:14

UBS has upgraded its rating for Russia-focused gold group Petropavlovsk from neutral to buy on the back of the recent share-price underperformance and weakness in the rouble.However, UBS has cut its target price from 650p to 630p after lowering its 2012 earnings per share (EPS) forecast by 22% to 104 US cents on the back of increased cost inflation.Panmure Gordon says that any weakness in Ladbrokes shares should be seen as a buying opportunity following the news that its head of trading, Jon Thompson, has been dismissed."This is clearly disappointing news and calls into question the structure of the business which moved away from a divisional approach to a competency or discipline based one some 12 months ago."However, the broker says that "this cloud may have a silver lining if superior traders can be recruited. Any share price weakness should be viewed as an opportunity."Peel Hunt has named its top picks and top risks as part of its review of the general retail sector, saying that while the category has enjoyed a strong start to 2012, the recovery is likely to be a long haul.Peel Hunt rates Dunelm, ASOS, N Brown and Ted Baker as buys and its top picks for growth. Debenhams and Booker are also rated buy as the leading 'self-help' retailers. As for the top picks for recovery, the broker highlights Topps Tiles (buy) and Moss Bros (buy).In contrast, Halfords has been downgraded from hold to sell to reflects "concerns on forecasts, a lack of organic growth and Halfords' inability to cut lease space." SuperGroup has retained its sell rating due to the sales mix and execution risk. Meanwhile WH Smith is rated a hold due to concerns over the disruptive impact of technology on the High Street.BC