Broker tips: Babcock, AstraZeneca, Hammerson

2nd Oct 2012 12:10

Jefferies reiterated its 'buy' recommendation and 970p target price for Babcock, saying that the business is "holding a steady course"."While the bid pipeline remains at £13bn, more opportunities are emerging at tracking stage including equipment support and training for the MOD. Babcock is a major beneficiary of MOD outsourcing and nuclear decommissioning, and we believe a return to 10%+ organic revenue is possible," Jefferies said.Credit Suisse has reduced its forecasts for pharmaceuticals group AstraZeneca after the firm announced on Monday that it had suspended its share repurchase programme with immediate effect."We believe today will likely mark the start of further EPS downgrades at AZN. The company will need to manage increasing generic competition in H2 and increased pressure on US Crestor with multi-generic Lipitor. We remain more cautious than consensus on the gross margin impact from the loss of Seroquel, the Brilinta launch, and growth in emerging markets," Credit Suisse said."With limited pipeline, patent losses, uncertainly over whether the slimmed down group has the firepower to market new drugs, and how they can restock their portfolio we reiterate our 'underperform' rating."Investec has upgraded its recommendation for retail-focused real estate investment trust Hammerson from 'sell' to 'hold' following a recent tour of the 'Value Retail' discount shopping outlet, Bicester Village, Oxfordshire.The broker has raised its net asset value-based target price from 415p to 465p to reflect the current sector rating and potential positive corporate newsflow.BC