Broker tips: Centrica, Meggitt, 888 Holdings

4th Feb 2013 11:25

Seymour Pierce has retained its 'buy' rating and 403p target price for Centrica after the energy giant revealed on Monday that it would not be proceeding further in nuclear build in the UK and would be launching a buy-back programme."This announcement removes some uncertainty around Centrica's investment intentions, confirming some recent press speculation. The share buy-back is small, but its impact should be modestly enhancing; and given the group's very strong underlying cash flow, it retains its firepower with respect to other investment options, along with the potential for further capital returns."UBS cut its recommendation for aerospace engineer Meggitt from 'buy' to 'neutral', causing shares to fall on Monday morning.The broker has raised the target price for the shares from 440p to 450p, but removed the stock from its M&A watch list "on lack of value-creation grounds".Panmure Gordon has raised its target price for online gaming group 888 Holdings after the company revealed details of their record fourth quarter on Monday morning.The broker has kept its 'buy' recommendation for the shares, saying that the stock is "inexpensive given the group's forecast-beating performance and growth potential in regulated and regulating markets."The target price has been nudged up from 143p to 145p, implying 18% potential upside from current prices.BC