Broker tips: Aberdeen, IAG, AVEVA

18th Nov 2013 11:34

Daniel Stewart & Company said that Aberdeen Asset Management remains one of its favoured stocks in the financial sector following Monday's acquisition of Scottish Widows Investment Partnership (SWIP) from Lloyds.Analyst Simon Willis said: "We believe this is a very good deal for ADN and despite today's [...] rise, with a 3% yield and likely dividend growth of 12-15% over the next three years, we would expect the stock to perform well over the next 12 months. ADN remains one of our preferred stocks in the sector."IAG's share price received a little boost on Monday morning as analysts at both UBS and Nomura raised their target prices for the stock following Friday's upgrade to 2015 guidance. Both brokers kept their 'buy' ratings for the shares. "Although the shares are up nearly 100% year to date we think there remains material upside should the current operational trajectory be maintained," said analyst Jarrod Castle from UBS.Panmure Gordon has maintained its 'hold' rating for engineering software firm AVEVA in spite of a broadly in-line set of first-half results, saying that the shares are still too expensive."We remain encouraged by the operational progress but our bugbear remains the valuation - price-to-earnings ratio of 31x - and is likely to make any new buying muted." The broker has lifted its target price slightly from 2,374p to 2,386p but maintained its overall cautious stance on the stock.BC