Broker tips: Tesco, Burberry, Hikma

17th Apr 2013 11:24

Panmure Gordon has maintained its 'buy' rating and 440p target price for supermarket group Tesco, highlighting a 'welcome shift in strategy' following the firm's full-year results.Panmure reckons that Tesco is on track in the UK and expects the recovery to "slowly emerge" this year and said that its company's decision to exit the US "will be taken well by the market".Nomura has kept its 'neutral' rating and 1,350p target price for luxury brand Burberry but has said that its valuation is "becoming attractive" after a decent fourth quarter."With organic sales better than peers in Q4, particularly in Retail, we believe Burberry continues to execute well, driving improved conversion, further elevating the brand and improving average unit retail selling price. "While FY14 is more reliant on comparable stores, our confidence in the group's ability to deliver has increased."Jefferies has cut its price target for pharmaceuticals firm Hikma from 1,150p to 1,040p after the company's decision to hold on to its global injectables business.Jefferies said that its previous 1,150p price target had included a 50% possibility of a sale of the business. A 'buy' rating for the stock was maintained.BC