Broker tips: Glaxo, Centrica, FirstGroup, ASOS

2nd Apr 2014 12:17

Panmure Gordon has said that the disappointing outcome of GlaxoSmithKline's (GSK) clinical trial for its therapeutic cancer vaccine MAGE-A3 is already priced into the stock.Panmure said that MAGE-A3 could have been one of the "three particularly transformative pipeline opportunities". However, given that the product was "very high risk" in an unproven area, the stopping of the trial should not trigger major downgrades to consensus forecasts for MAGE-A3.Credit Suisse has lowered its estimates for Centrica, saying that a 2015 price rise at British Gas is no longer likely.The bank said that after the decision by SSE to freeze residential prices until at least January 2016, Centrica "has to follow suit".Investec continued to recommend investors to 'buy' shares of transport firm FirstGroup but has admitted there are 'bumps in the road'."The underlying message is still broadly consistent with previous updates, however, and whilst there are bumps in the road (with Student remaining the key risk), we remain hopeful that management will be able to turn the business around. That said, the stock might trade a little lower today," the broker said.The recent weakness in ASOS' share price is a good opportunity for shareholders to top up their holdings, according to Numis Securities, which said that the business is "loaded with investment for growth"."Following the trading update two weeks ago, we leave our forecasts unchanged and remain confident in the ASOS proposition - a unique global growth opportunity, with an investment-loaded P&L. We see the recent pull-back as an excellent buying opportunity and reiterate our positive stance."BC