Broker tips: Hargreaves Lansdown, DMGT, Hays

1st Sep 2011 12:55

Singer Capital Markets says its fair value rating on wealth management firm Hargreaves Lansdown (HL) is currently under review but has highlighted the group's in-line final results, strong dividend payment and robust current trading."Considering the increasing volatility of markets towards the company's June year end, HL's record final results demonstrate the strength of the business," said analysts Sarah Ing and Steve Keeling."Our rating is currently under review but the core attractions of HL's brand strength and strong cash generation remains evident."The target price is left at 550p.Peel Hunt has slashed its target price on Daily Mail publisher DMGT to 494p from 543p, citing continuing caution over newspaper markets.The broker remains a fan of the stock, however, and keeps its buy recommendation. It notes that DMGT trades at around 7.7 times expected 2012 earnings, which is "not expensive."Peel Hunt is still less enthusiastic than Panmure Gordon, which also has a buy rating, but a much higher target price of 625p."We anticipate a number of minor catalysts in coming months which could result in a rally from current depressed levels," Panmure said.Merchant Securities has reiterated its positive stance on FTSE 250 recruitment firm Hays, saying "continue to buy for [the] yield"."We are cautious regarding global economic growth in 2012 but Hays should fare better than its more perm-focused peers," said analyst Ian Jermin."We retain our buy recommendation on the basis of a strong yield of 7.7%," he said.The target price is left at 100p.BC