Broker tips: De La Rue, Bodycote, Michael Page

29th May 2013 11:08

Investec has upgraded its rating for banknote maker De La Rue from 'add' to 'buy' following the company full-year results on Wednesday, with the broker saying that the company is in 'increasingly good shape'."Reduced visibility in ordering patterns from the group's customers continues to impact, particularly on production schedules, increasing forecast uncertainty. However, the group is increasingly in good shape operationally and we believe this bodes well for its competitiveness, flexibility and long-term profitability.JPMorgan Cazenove has cut its recommendation for FTSE 250-listed thermal processing group Bodycote from 'neutral' to 'underweight', saying that the group's outperformance will likely reverse on the lack of volume growth."The group generates c.65% of revenues in Western Europe. Automotive and general industrial markets represent over 60% of group revenues. Given this combination, we believe a significant percentage of the group's markets are likely to remain challenging and we do not forecast underlying volume growth."Credit Suisse said it remains cautious over recruitment firm Michael Page International (MPI) and has kept a 'underperform' rating for the stock.The broker said that MPI, which a 77% exposure to the permanent markets and a 40% exposure to Europe, "has both the most challenging end markets and the most optimism reflected in the share price".