Broker tips: Burberry, ENRC, Dixons

15th Nov 2011 12:03

Despite the market's cool reaction to Burberry's first half results on Tuesday morning, Nomura has upped its full-year numbers, saying it sees "significant growth potential ahead".The broker has raised its full-year adjusted pre-tax profit forecast by 1% to £372m, expecting "higher retail comp store sales growth slightly offsetting higher cost growth".Nevertheless, the broker kept its neutral stance on the stock on valuation grounds. A 1,356p target was retained.UBS has scaled back its earnings estimates for Eurasian Natural Resources Corp (ENRC) but reiterated its buy rating on the FTSE 100 multi-metal mining giant.While ENRC's third quarter production figures were broadly in line with UBS's forecasts, the broker downgrades its 2011 and 2012 earnings per shares estimates by around 9% to reflect higher-than-expected costs and lower implied prices in iron ore.UBS said, "our 950p target (previously 1,000p) is based on a 10% discount to net present value, reflecting corporate governance issues; we are attract by commodity mix, but expect shares to trade at discount until visibility improves."Credit Suisse has cut its target price for Currys and PC World owner Dixons Retail ahead of the firm's interim results next week.To reflect "weak Southern European trends", the broker cuts its current year and next year pre-tax profit estimates by 10% and 7%, respectively. As such, the target price - based on a forward earnings multiple of 10 - is cut from 27p to 25p.Nevertheless, with the shares currently trading on a prospective earnings multiple of 6.7 and a forward earnings multiple of 4.8, Credit Suisse keeps its outperform rating.BC