Broker tips: ENRC, JD Sports, ICAP

14th Jan 2013 11:07

Credit Suisse has raised its rating for Eurasian Natural Resources Corp (ENRC) from 'neutral' to 'outperform', saying that it foresees catalysts ahead for the mining company.The broker said on Monday morning: "Our cautious stance in H212 was due to concerns over earnings, balance sheet and M&A. We think downside risks are now limited with potential re-rating catalysts in 2013. Importantly, the company's acquisition run has finally ended and could kick into reverse with small divestments in '13/14 in our view."Seymour Pierce has reiterated its 'buy' recommendation and 1,000p target price for JD Sports, saying that while Blacks continues to struggle, shares are cheap."Although we are yet to be persuaded on the Blacks' recovery plans, we believe JD Sports, which has underperformed the sector by c.20%, is oversold. On our revised forecasts, the stock is now valued at 7.9 times FY13 earnings declining to 6.6 times in the following year."ICAP is a "recovery to buy into", according to analysts at Prime Markets, who said that the interdealer broker's shares are responding to the strong Christmas and New Year rally."As an interdealer broker and provider of post trade risk and information services, ICAP's fortunes are entirely dependent on market confidence, and just as last year saw trading volumes fall to record lows, the recovery in the run up to Christmas and the strong start to the new year would indicate an improvement is on the cards," the broker said.BC