Broker tips: Aveva, Chemring, Domino Printing

19th Sep 2014 11:16

UBS has substantially reduced its target price for Aveva after the engineering software group's recent profit warning, but has kept a positive stance on the stock, saying "it would be wrong to sell now".The bank slashed its target for the shares from 2,500p to 1,950p though maintained its 'buy' rating. It has Aveva on its "M&A watch list" and pointed out that the board is considering the possibility of a share buyback, given the £118m of net cash it had at the end of March.Shares of aerospace, defence and security technology group Chemring were given a boost on Friday after Canaccord Genuity lifted its rating from 'sell' to 'hold' and hiked its target price from 160p to 225p.The broker said that the stock is moving to a "recovery play" after the end of major balance-sheet restructuring activity. It said that while Chemring has low visibility on future orders and trading remains challenging, increasing global geopolitical tensions should provide positive momentum.Investec has remained positive on shares of Domino Printing Services after inkjet and laser printing company delivered a "reassuring" trading update on Friday. It rates the stock as 'add'.The broker said that while the company has had its "occasional blips", its long-term track record for generating growth means that these can be excused.