Broker tips: Burberry, Hargreaves Lansdown, SABMiller, BSkyB

14th Oct 2014 12:44

The Share Centre has repeated its 'buy' stance on Burberry despite the luxury fashion group's gloomy outlook which sunk shares on Tuesday.There are short-term challenges, analyst Helal Miah admitted, but "we believe there are solid grounds for optimism". He said that the "sheer scale" of the middle class in the Far East should underpin demand for luxury companies, while exports should be boosted with a recovery in global economic growth and a weaker pound.Financial services group Hargreaves Lansdown is still worth a 'buy' for its long-run prospects, but the short-term outlook is less certain, according to Peel Hunt."We continue to believe that the strength of Hargreaves' offering will help it retain its leading market position, albeit that revenue trends in the short term remain more challenging. "We retain our 'buy' recommendation, although we recognise the negative sentiment in the short term," the broker said.Consensus forecasts for SABMiller "might come under a little pressure", according to Numis Securities, after a trading update from the beverages group showed weakness in the Asia Pacific region.Nevertheless, the broker maintained its 'buy' recommendation and 4,100p target price for the stock. The broker kept its upbeat stance, saying that the company could now be considered to be "in play" with regards to M&A.Berenberg has recommended investors to 'sell' shares of British Sky Broadcasting ahead of the broadband and pay-TV group's first-quarter results on Thursday."While the company obviously benefits in the current volatile market environment from its positioning as non-cyclical and a steady cash flow generator, various upcoming events could change this," the broker said, referring to the first tender period for the Sky Deutschland takeover and the upcoming Premier League rights auction.