Broker tips: BT, Next, Aviva

23rd Mar 2012 12:08

Jefferies has maintained its positive view on telecoms giant BT, saying that the group's agreement with its pension scheme trustee 'crystallises' dividend upside."Dividend upside has been a longstanding driver of our positive view on BT. Incremental positive is that upgrades may now be communicated in May, six months earlier than expected," Jefferies said. A buy recommendation and 237p target price was reiterated.Fashion and homeware retailer Next was performing well on Friday morning, with Nomura providing a lift saying that the stock is a key holding in the retail sector."We continue to view the shares as a core holding in the sector, with capital discipline, productivity gains and m/term brand development key in our view." A buy rating was reiterated.The target price has been raised slightly, from 3,000p to 3,050p. Nomura said that the stock is trading at 10.3 times prospective earnings.UBS has lifted its target price for insurance group Aviva from 380p to 450p and reiterated its buy rating on the stock."We like Aviva's share price, but there is plenty about the business that worries us. However, we think the new chairman will address these concerns once his appointment is confirmed on 3rd May," said analysts James Pearce and Angela Gu.They said that ongoing benefits from the ECB's long-term refinancing operation (LTRO) and further disposals could also provide helpful newsflow, and the valuation "looks compelling".BC