Broker tips: Cairn, Cobham, Brooks Macdonald

5th Aug 2011 12:56

Matrix has slashed its target price for Cairn Energy and maintained its hold rating on the stock, saying that "chances are running out" for the oil explorer."There are now only three opportunities for drilling success this year in Greenland, and the chances for achieving it look slim," said analyst Charlie Sharp.The comments come two days after the group announced that the well on the Lady Franklin Block offshore Greenland reached target depth and is being plugged and abandoned.The target price is lowered from 410p to 370p.UBS has made downgrades to its forecasts for defence firm Cobham to reflect the decline in organic sales in the first half.The broker had expected flat sales in the six months ended 30 June, but the company reported a 1.5-2% decline. Couple with a further 1% fall due to currency movements, UBS cuts its sales estimates by 2-3%.As such, the target price falls from 270p to 245p. Nevertheless, a buy recommendation is retained.Peel Hunt has upgraded wealth manager Brooks Macdonald from hold to buy following the recent share price underperformance.Shares hall fallen 28% over the past month, and as such the broker highlights an attractive entry point. The target price stays at 1,260p.BC