Broker tips: Admiral, Weir, Burberry

2nd Nov 2012 11:12

Investec has retained a 'sell' recommendation and 570p target price for car insurance firm Admiral after the group revealed that revenue growth had slowed in the third quarter."We believe that, while the forecast 7% yield will support the stock, paying 12x earnings for what is essentially a UK motor insurer is too much," said analyst Kevin Ryan.Jefferies has downgraded its rating for engineering giant Weir from 'buy' to 'hold' ahead of its third-quarter results next week, saying that its short-term stance is one of 'rising caution' over risks to 2012 and 2013 consensus forecasts."We have not turned hugely bearish on Weir (more that we are cautious over the near-term) and we continue to like the business over the long-term," the broker said. "There is, however, insufficient upside to our target price (1900p) to warrant a more positive recommendation." The previous target was 2,185p.Seymour Pierce has raised its target price and maintained its 'buy' rating for luxury brand Burberry ahead of the group's first-half results on November 7th.The broker estimates a first-half profit before tax (PBT) of £165m, earnings per share of 27.4p and a dividend per share of 7.8p. Full-year PBT forecasts are £390, slightly below the consensus estimate of £400m.BC