Broker tips: Aviva, RBS, Lloyds...

16th May 2013 11:31

Investec has kept its 'reduce' rating and 316p target price for insurance giant Aviva despite a well-taken first-quarter trading update from the firm on Thursday."There are signs of improvement in the 1Q numbers, but progress in one area is matched by difficulties in another. Fixing Aviva is likely to take time and until there is clear, sustainable progress across its various businesses there is no reason to own the stock, in our view."Daniel Stewart & Company has raised its ratings for part-nationalised lenders RBS and Lloyds to 'buy', saying that placings of the government stakes in 2014 now look like a "strong probability".Regarding the timing of the transactions, Daniel Stewart analyst Simon Willis said that the third or fourth quarter of next year was his initial prediction, though "suddenly Q1/Q2 [in 2014] looks feasible".Prime Markets has labelled travel agent Thomas Cook as a 'buy', hailing the new strategy of Chief Executive Officer (CEO) Harriet Green."The improvement in trading, bookings and reduction in losses and debt may well be a work in progress but marks a sea change to the old lumbering company drowning in debt just a year ago. Prime Markets backs Thomas Cook and the strategy of CEO Harriet Green, with a short-term target of 160p plus."Panmure Gordon has reiterated its 'buy' rating and 45p target price for Dixons Retail, saying that the company's fourth-quarter trading update will prompt forecasts upgrades."The Q4 statement is strong, in particular in the UK, which is now generating excellent two-year growth. Forecasts will be upgraded as a consequence and there is significant future profit opportunity as Dixons continues to gain more than its share of the Comet business and eliminates losses overseas."BC