Broker tips: Burberry, StanChart, Halfords, Croda

10th Jul 2014 12:54

Luxury brand Burberry's first-quarter update showed signs of "blowing away some cobwebs", according to Hargreaves Lansdown Stockbrokers."Burberry provides premium products, has a premium valuation, but has yet to attain a premium rating - however, updates such as this will continue to exert positive pressure on the market consensus which, for the moment, remains anchored at a strong 'hold'."Investec has recommended that investors "keep the faith" at Standard Chartered despite an underwhelming first-half update from the emerging markets-focused bank last month.Analyst Ian Gordon said he was disappointed by the group's statement last month but "we see a strong underpinning for the resumption of revenue-led growth in the second half and beyond."Oriel Securities has reiterated its 'buy' recommendation for Halfords despite a negative market reaction to a first-quarter statement on Thursday, saying that the update from the car- and bike-parts retailer was "stellar"."The shares have had a good run and to a degree Q1's excellent is priced in. However momentum is very strong and we stay buyers."UBS has downgraded chemicals group Croda from 'neutral' to 'sell', saying that the stock's premium valuation to the sector is "unwarranted".The bank explained that the shares have performed resiliently despite the company warning on loss of pricing power and increasing competition. It also downplayed hopes of a potential buyer of the business, which had bolstered the share price as of late.BC