Broker tips: AMEC, Meggitt, ITV

20th Aug 2013 11:13

Credit Suisse has maintained its upbeat stance on engineering consultancy firm AMEC despite Monday's rejected takeover bid of smaller rival Kentz Corporation, saying that the company could re-start share buybacks later in the year."If Amec fails to secure a meaningful acquisition by 4Q management can be expected to announce the re-commencement of share buybacks. Some investors may view this as an admission of failure, but we believe management should maintain its policy of strict capital discipline."Meggitt, the engineering group working in the aerospace, defence and energy markets, was making gains on Tuesday morning after Investec upgraded the stock from 'add' to 'buy', saying it still sees further upside even after the near-40% ire so far this year.Analyst Chris Dyett said: "For a number of years now civil aerospace stocks have been market favourites given the long term visibility and growth prospects. However, we favour Meggitt for its subtle improvements, which we still think are under-estimated and under-valued."Morgan Stanley has raised its target price for terrestrial broadcaster ITV from 175p to 185p, highlighting the potential for an upswing in UK advertising.The bank, which reiterated its 'overweight' position on the stock, said: "Advertising momentum will be the key driver of the short-term share price. 2013 appears to be in good shape and the market is optimistic that 2014 will see an improving UK environment."BC