Broker tips: ARM, RBS, Aberdeen

25th Mar 2013 11:26

Shares in chip designer ARM Holdings surged on Monday morning on the back of comments from Bank of America Merrill Lynch on the potential of its 'big.LITTLE' energy-saving technology."We reiterate our 'buy' rating and believe that the recent share-price weakness provides a particularly attractive buying opportunity," the broker said.Goldman Sachs has taken Royal Bank of Scotland off its 'sell' list, saying that the expected earnings dilution from potentially higher capital regulations is already priced in to the stock.The broker said: "While the results of the FPC/FSA capital examination exercise have yet to be released, we view the announced strategic actions at RBS as anticipating its outcome. Against this backdrop, and with the stock having underperformed the sector and the other UK banks in our coverage by 12% and 16% respectively since end-January and offering 23% upside to our revised price target, we upgrade the stock to 'neutral' from 'sell'."Canaccord Genuity has kept its 'buy' rating and 460p target price for asset management group Aberdeen after its first-half trading update."Aberdeen remains our top pick in the asset management sector as it provides both a rising earnings per share to justify valuations and a rising dividend distribution metric for shareholders," Canaccord said.BC