Broker tips: GSK, BHP Billiton, International Personal Finance, Supergroup

22nd Oct 2014 13:19

Hargreaves Lansdown says the City may take a more charitable view of Glaxosmithkline shares after the drug group announced higher third-quarter earnings per share and a streamlining of its business.The broker said analysts may need to "positively re-evaluate" the market consensus on the shares as a 'hold' after GSK said cost cuts and savings had helped it to increase its core earnings per share by 5% at constant exchange rates to 27.9p.BHP Billiton's production results for its fiscal first quarter were "only just enough", according to Morgan Stanley, which kept an 'overweight' stance on the stock."With first quarter FY15 production a little soft compared to our estimates but unchanged full-year guidance we do not see these production results to be a trigger for the shares either way," the US bank said.The recent drop in the share price of International Personal Finance (IPF) means that the stock is now worth a 'buy', with Panmure Gordon removing its 'sell' recommendation."We think the negatives are priced in - potential weakness in Central European economies (principally Poland) via Germany, currency headwinds possibly into 2015, and regulation where IPF has so far adapted successfully," the broker said.The hiring of former Co-op boss Euan Sutherland as the new chief executive officer of Supergroup is a "great appointment" by the fashion retailer, according to broker Peel Hunt which reiterated a 'buy' rating for the stock."Taken in conjunction with the strengthening of the board and wider management team over the past two years, Supergroup now has a strong and experienced top team to deliver its medium-term growth ambitions," Peel Hunt said.