Broker tips: Astrazeneca, Compass, Beazley

5th Feb 2015 11:47

The Share Centre has rated Astrazeneca a 'hold' for medium-risk investors after fourth-quarter results from the drugmaker disappointed, saying that investors may have to wait to see material improvements in the top line.Analyst Helal Miah said: "The company is in a transition phase investing heavily into R&D to boost its drugs pipeline with the hope of mitigating falling sales caused by generic competition. While the increase is promising, this does not guarantee that sales will eventually turnaround and we believe that more evidence of progress is needed."Compass delivered a good start to its new financial year and Numis Securities has upgraded its estimates for the catering company, though the broker still maintained a 'hold' recommendation for investors.Numis lifted its target price for the stock from 975p to 1,150p, but said the "share price is up with events". Nevertheless, the broker admitted that Compass' first-quarter performance was well ahead of its own expectations.Annual results from insurer Beazley were more or less in line with expectations, according to Westhouse Securities, though the broker has placed its 'neutral' rating under review after recent gains in the stock.The broker said: "Our forecasts are broadly unchanged at this stage but on the current share price Beazley trades 1.8x 2015E net tangible assets and yields 3.3%. Our 'neutral' recommendation is therefore under review given the recent share price rally and the fact that the trading outlook is getting more challenging so profits across the sector will fall in 2015/16."