Broker tips: ENRC, Spirent, IQE

8th Apr 2013 10:53

The share price of diversified miner Eurasian Natural Resources Corporation (ENRC) was sharply higher on Monday morning after US broker Citigroup lifted its rating for the stock from 'sell' to 'neutral'.With the shares now down 37% (at Friday's close) from their February peak of 398p, Citigroup said that the risk-reward profile has "shifted more into balance".UBS has cut its recommendation for communications technology group Spirent from 'buy' to 'neutral' and slashed its target price from 180p to 155p.The broker said that following the recent profit warning from US networking appliances firm F5 Networks and what remains a subdued wireline capital expenditure (capex) environment, "we believe a market recovery is likely to take longer than previously anticipated".AIM-listed tech group IQE was performing well on Monday morning after Investec upgraded the stock from 'sell' to 'hold', saying that the advanced semiconductor firm is "due a bounce"."With IQE shares having underperformed over the weeks since the FY12 results, we see current levels as offering fairer value. Whilst we have argued that the cash profile of the RFMD deal and the recently-increased debt level need to be taken into consideration in valuing the equity, we believe the extent of the price weakness could mean the shares are due a bounce."BC