Broker tips: Burberry, Britvic, Balfour Beatty

11th Jul 2012 12:04

Nomura has reduced its target price for luxury brand Burberry after a slower first quarter, though the broker maintained its 'buy' recommendation for the stock.Given the recent pull back in the sector and its reduced estimates, the broker has lowered its price target from 1,530p to 1,450p.Investec also reiterated its 'buy' rating on the stock this morning, saying: "We would highlight that Q1 is the smallest quarter for Burberry and is against the toughest comp this year." The broker said it would review its forecasts for the group after a conference call with the firm but is "happy to remain a buyer".Panmure Gordon has downgraded its recommendation for soft drinks group Britvic from 'hold' to 'sell' and slashed its target price from 350p to 250p after Wednesday's trading update which saw the stock drop by 15 per cent.Britvic has said the recall of its Robinsons Fruit Shoot and Fruit Shoot Hydro drinks could cost the company £15-25m, up from earlier guidance of just £1-5m. Added to this, poor weather conditions and weak consumer sentiment means the group now expects to deliver a full year results at the bottom end of market expectations - before taking account of the impact of the recall."Whilst Britvic cannot control the weather, we believe the issue surrounding the product recall was avoidable," the broker said.UBS has downgraded its rating for international construction firm Balfour Beattyfrom 'buy' to 'neutral' and cut its target price from 340p to 310p after the stock's strong performance over the last few months.Since the start of May, the share price has improved from the 260-270p level to over 300p. "We believe Balfour Beatty's valuation is now less compelling," the Swiss broker said.BC