Broker tips: Burberry, Great Portland, FirstGroup

23rd May 2012 11:17

Investec has reiterated its buy recommendation and 1,690p target price for British luxury brand Burberry in spite of today's negative market reaction to the firm's full-year results."We don't expect to change our underlying trading forecasts. The lack of upgrades may see bears take issue today, but we are happy to remain buyers given the group's long-term potential," the broker said.Credit Suisse has upgraded its recommendation for Great Portland Estates from neutral to outperform, after the real estate investment trust's (REIT's) full-year results were 'comfortably ahead' of analysts' forecasts."With a 16 strong development pipeline with embedded profit yet fully realised, plus near-term sales at prices likely to exceed book, we believe Great Portland has the ability to deliver more alpha than the majority of its peers, particularly in the short-medium term."The target price has been raised from 398p to 440p.Charles Stanley has left its hold recommendation and 250p target price in place for transport firm FirstGroup after its full-year results this morning."Our view: Tim O'Toole's first full year in charge hasn't been inspiring, with earnings slipping a little, though return on capital looks to have been a respectable 8-9%," said analyst Douglas McNeill."Trouble is, this year is going to be worse, not better, as surgery is performed on the UK bus division; our FY13 forecasts are likely to stay where they are," he said.BC