Broker tips: BHP Billiton, Tullow, Whitbread

11th Dec 2012 11:12

Nomura has labelled BHP Billiton as its preferred name in the global metals and mining industry, reiterating its 'buy' recommendation and 2,350p target price for the shares."We believe it is time for a change of mindset in terms of how many in the market view the sector. Although we think trading short-term beta rallies will still be a way to achieve returns, these will tend to be short-term directional trades. Looking through these, we believe those stocks that can reliably generate alpha will be the winners over the longer term."Jefferies has reiterated its 'buy' rating and 1,800p target price for oil giant Tullow, after the acquisition of Norwegian explorer Spring Energy and its plans to dispose of its UK and Dutch North Sea gas assets.The broker reckons that Tullow has an attractive 2013 drilling programme with projects in its other high-value regions including Kenya, Mauritania, Mozambique and now the Northern Atlantic.Costa and Premier Inn owner Whitbread's third-quarter trading statement received a warm welcome from the market on Tuesday morning, but analysts have decided to stay cautious about the stock despite the in-line results.Panmure reiterated its 'hold' recommendation and 1,994p target price, saying that it remains "cautious on current trading and the increasing competitive environment for budget hotels".Investec chose to take a more negative stance than Panmure though, maintaining its 'sell' rating and 1,650p target for the shares, saying that the stock "is pricing in an outlook for substantial group returns improvements that, Costa-aside, we do not think exists."Bc