Broker tips: Admiral, Cobham, RPS

9th May 2011 11:51

After a strong first quarter statement, Admiral has seen its target price raised by Credit Suisse to reflect upside revisions to the broker's near-term earnings forecasts."Few details were released in the interim management statement on Friday. However, the delta between revenue and vehicle count growth numbers shows that pricing momentum is still there and that UK motor markets remain hard," said analyst Richard Burden.The Swiss broker has increased its target price by 4% to 1,728p, from 1,662p, to reflect its average 4% hike in earnings per share estimates for 2011-2013. A 'neutral' rating is maintained.Cobham is the European defence company that is "best addressing a shrinking defence market", according to UBS, which has upgraded the group's rating to a 'buy', from 'hold'.UBS highlights Cobham's continuing disposal programme - which includes Cobham Analytics and Commercial Systems - saying that it is selling businesses at high multiples, and thus, "crystallising value". The target price is hiked to 270, from 225p previously.With over half of RPS's 2011 profits derived from its Energy division - amidst a high oil price - RBS has raised its target price for the environmental consultant from 235p to 250p, as it continues to view the group as "an undervalued energy services sector play."RPS had a positive first quarter, according to the broker, with signs of a recovery in trading in 2011: "Encouraging trading in recent months suggests that a sustainable recovery is under way in the Energy division, with the sustained high oil price near US$100/barrel stimulating client spend, boosting RPS's operations support and technical studies activities," said RBS.A 'buy' rating is retained.---BC