Broker tips: Anglo American, Rolls-Royce, Booker

13th Oct 2011 12:56

Credit Suisse has reiterated its neutral stance on mining giant Anglo American, saying that if a large share of the Los Bronces project in Chile is sold, then the group could lose part of a "key growth pillar".The broker says that it appears that Codelco could exercise its option to acquire a 49% non-controlling interest in Los Bronces, the open pit copper and molybdenum mine."Questions over Anglo's growth policy and overall strategy will also likely arise, in our view." Evolution Securities has maintained its buy rating on Rolls-Royce following the firm's latest disposal and partnership with Pratt & Whitney.The global power systems group announced late Wednesday night that it is selling its 32.5% stake in International Aero Engines (IAE) - the business which produces the V2500 engine for the A320 Airbus - to Pratt & Whitney for $1.5bn, in addition to further payments for every hour IAE engines are flown over the next 15 years. Furthermore, the company unveiled a new partnership with Pratt & Whitney to power future mid-size aircraft which hold between 120 and 230 passengers. "This deal appears to accelerate the profit recognition of the aftermarket value of 4,500 engines in service and 2,000 on order. RR are currently focused on more than doubling deliveries of the high thrust Trent engines and integrating the €3.4bn acquisition of Tognum. This deal helps drive profit delivery and we reiterate our buy recommendation," Brown said.The broker says that its numbers are put under review for the time being.Peel Hunt has upped its target price for cash and carry group Booker from 65p to 70p after an "excellent" first half prompted the broker to raise its full-year numbers by 3%.The broker expects Booker to report a pre-tax profit of £78m in the year ending March 2012, up from its previously estimate of £76m.However, a hold rating is kept: "The business continues to trade well against a tough market background, but the shares look up with events on 18.5 times forecasted earnings," said analyst Charles Hall.BC