Broker tips: Admiral, Petropavlovsk, Aberdeen Asset Management

21st Feb 2012 12:25

Credit Suisse has upgraded its rating on Admiral from neutral to outperform ahead of the insurer's full-year figures on March 7th.The broker expects the results "to represent the first step for Admiral towards regaining market confidence that bodily injury (BI) challenges are being resolved, with improved clarity expected to provide upside risk to earnings expectations."The target price has been lifted from 1,100p to 1,300p.Nomura has upgraded its rating and target price for Russia-focused gold miner Petropavlovsk, saying that the group's resource update this week could "create trading opportunity".The broker says that mined grades at Petropavlovsk's Pioneer mine have fallen over the past three years and the remaining ore reserves are well below historical grades. However, after an $80m exploration campaign in 2011 focused on Pioneer, the construction of an additional milling line being brought forward to 2012, and the possibility of the non-refractory Pioneer mine life being extended to 2016, "we believe that the resource update on 23 February will provide positive news on Pioneer production potential," the broker said.The rating has been lifted from reduce to neutral, while the target price is upped from 860p to 910p.Aberdeen Asset Management has had its rating downgraded by Peel Hunt from buy to hold due to the recent run-up in the share price.The broker says that the group's strong performance in key equity funds in the year-to-date has prompted it to upgrade 2012 and 2013 forecasts by 4% and 7%, respectively. However, over the last three months, the shares have gained 36%."Whilst there is clear momentum behind Aberdeen's business (which supported our buy recommendation), there is now just 7% upside to our upgraded target price of 280p (from 270p) after recent share price appreciation, and we therefore downgrade our recommendation to hold," Duncan said.BC