Broker tips: GKN, BSkyB, Home Retail

19th Oct 2011 12:28

GKN was the worst performer on the FTSE 100 at midday on Wednesday, despite Investec expecting the market to "take comfort" in the group's latest 'in line' update."GKN is a highly volatile stock that will continue to fluctuate with global autos and broader macro concerns. However, on this update it appears the shares are pricing in a high element of caution given the group's growth potential in a benign market scenario," analyst Andrew Gollan said.Nevertheless, the broker labelled GKN's third quarter trading as "robust", and maintained its buy rating and 250p target price.Evolution Securities recommends buying shares of satellite TV, landline and broadband supplier British Sky Broadcasting (BSkyB), saying that its first quarter results "highlight the reason investors should own the stock"."Reported key performance indicators were a fraction behind our forecasts (multiroom aside), but that is only because Sky has set the bar so high for itself," said analyst Steve Malcolm."We will review our forecasts in light of 1Q results, but retain our buy recommendation and do not expect our 750p price target to change materially," he added.Following Home Retail's disappointing first half results, Singer Capital Markets says that downgrades to full-year estimates of between 15-20% are likely."We remain cautious on earnings prospects given the group's exposure to the UK mass market customer, the continuing squeeze on spending and competition," Singer analysts said.The broker keeps its sell rating and 95p target price.BC