Broker tips: G4S, Aviva, Bovis Homes

17th Oct 2011 12:54

Investec has labelled G4S's blockbuster £5.2bn acquisition of ISS as a "bold, strategic move" that looks to transform the group from a single service provider (security) to a multi-service facilities management provider."Strategically this makes good sense to us, as a multi-service offering maximises the cost-saving potential to clients...Strategically this makes good sense to us, as a multi-service offering maximises the cost-saving potential to clients," Investec analyst Guy Hewett.At this stage, the broker leaves its hold rating and 280p target price unchanged.Shares in insurance group Aviva were higher on Monday helped by an upgrade by UBS, which raised its rating on the stock from neutral to buy.The Swiss broker said that while the company is the most exposed to the Eurozone out of all the UK insurers - which has driven underperformance over the summer - if policymakers take steps in the fourth quarter to "restore order", then the recent trend should reverse.The target price is raised from 290p to 380p to reflect the reduce macro tail risks.Panmure Gordon has downgraded Bovis Homes from buy to hold, following the recent rise in the house builder's share price."At this stage in the cycle, despite being positive on the sector overall, we think a 15% discount to net asset value is fair, particularly given the uncertainties in the economy at large," Panmure said.The target price remains unchanged.BC