Broker tips: Ashmore, SABMiller, Shire

5th Apr 2012 12:28

Emerging markets (EM) focused fund manager Ashmore was leading the risers on the FTSE 100 on Thursday after UBS upgraded its rating on the stock from neutral to buy.UBS said that the stock's recent underperformance, combined with the strong fund performance and record inflows at industry level, has prompted the broker to raise its recommendation, it said.The broker has raised its target price from 400p to 420p.Jefferies has raised its target price for drinks giant SABMiller from 2,725p to 2,850p and maintained its buy rating on the stock."We remain fundamentally positive on the prospects for SABMiller and continue to highlight the company's strong growth profile driven by its peer-beating 70% profit exposure to emerging markets," the broker said.Jefferies does acknowledge that the more subdued performance in North America and Europe will remain a challenge in the medium term but still forecasts a five-year forward earnings per share (EPS) compound annual growth rate of 15%. Nomura has initiated its coverage of pharmaceuticals giant Shire with a buy recommendation and 2,300p target price, saying that the stock is trading at a discount to its peers despite 'above-sector growth'.The broker thinks that the 3% discount to the sector is not justified by the above-sector growth, "leaving little/no downside risk from correction of such a hypothetical premium."BC