Broker tips: Aberdeen, Centrica, Diploma

11th May 2015 11:11

Aberdeen Asset Management shares were hit by a downgrade at Societe Generale on Monday from 'buy' to 'hold' on the back of weaker fund flows in the first half.The bank has lowered its earnings per share (EPS) estimates for 2015 and 2016 by 4-6% and cut its target price from 490p to 485p. While SocGen forecasts a reduction the rate of outflows from the £11.3bn reported in the first half, it still expects outflows to total £18.3bn over the year - £7bn in the second half - "due to the ongoing redemption profile from both SWIP and a number of equities products".Deutsche Bank has lifted its recommendation on British Gas owner Centrica from 'sell' to 'hold', saying that the risk that a Labour government posed to group has now been removed."The Conservative election victory removes a significant political risk from the UK energy retailers and Centrica in particular," Deutsche Bank said. With the Tories likely to form a majority government lasting through to 2020, the threat of Labour legislation to freeze energy bills and replace Ofgem with a tougher regulator have now disappeared.Shares in technical products group Diploma were trading in the red on Monday after the company cautioned about headwinds to organic growth, prompting Numis Securities to lower its rating on the stock from 'add' to 'hold'.The broker it was shifting its stance following Diploma's recent strong share-price performance, with the shares having surpassed its 843p target price. "We downgrade to 'hold' and would look for a better entry point into the shares," Numis said.