Broker tips: BHP Billiton, Morrisons, St James's Place, Sky

25th Feb 2015 11:39

Investec has hiked its target price for mining giant BHP Billiton from 1,323p to 1,552p after first-half results on Tuesday impressed the market, though the broker still kept its 'hold' rating."BHP Billiton has gone some way to regaining market favour by delivering a solid set of interim results, reflecting still-robust cashflow and an increased progressive dividend," said analyst Hunter Hillcoat. However, he said that the stock looks "fully priced" and its valuation multiples are much higher than others in the sector.Shore Capital has welcomed the appointment of David Potts as the new chief executive officer of Morrisons, saying his experience and expertise may bring about a much-needed turnaround in the supermarket's sales performance, and share price.The broker upgraded the UK grocer from 'hold' to 'buy', saying that the shares could outperform the sector in the near term, "and, with good execution, thereafter".The "strong performance continues" at St James's Place, according to Berenberg, after 2014 results from the wealth management group topped forecasts on Wednesday.The broker reiterated a 'buy' recommendation and 950p target price for the shares, saying: "With an ever-widening savings and advice gap in the UK, coupled with the opportunity for St James's Place to export its business model to ex-pat communities, we believe that the company remains very well positioned."Shares in Sky poured on respectable gains in Wednesday's session after Citigroup retained a 'buy' recommendation on the stock and promoted it to the bank's 'Focus List Europe'.The bank also raised its price target to 1,200p from 1,075p, noting that with the soccer Premier League outcome out of the way, investor focus will return to the attractive fundamental outlook for Sky, its strategy and underlying growth potential.