Broker tips: Hargreaves Lansdown, Prudential, African Barrick Gold, Ladbrokes

12th Aug 2014 12:16

Shares in financial services group Hargreaves Lansdown were under pressure on Tuesday after UBS initiated coverage of the stock with a 'sell' rating, saying that the "risk-reward [is] significantly skewed to the downside".The bank set a 850p target price for the stock, which implies downside from the 1,081p closing price on Monday. It believes that at current prices, the market "significantly overestimates" the flow potential at Hargreaves Lansdown.The Share Centre has given Prudential a 'buy' rating, saying that the insurer is "attractive for investors" after another set of strong results on Tuesday."We continue to recommend Prudential as a 'buy' for investors looking for a positive investment idea that spans the US, Asia and the UK. The Asian growth story continues to remain highly attractive along with strong UK and US operations."The "tide has turned for the better" at African Barrick Gold (ABG), according to Investec which upgraded the stock from 'sell' to 'hold' on Tuesday. The broker hiked its target price for the shares from 212p to 260p.Investec said ABG's second-quarter and first-half figures released last month showed a good production performance, but the key takeaway was that operating cash flows exceeded investing cash flows. This was "the first time this has occurred in 10 quarters", the broker said.Numis Securities reiterated a 'hold' stance on shares of Ladbrokes on Tuesday after a broadly in-line first half, but said it expects a "material turnaround" in profitability at the UK bookmaker.Numis reckons that the recent share-price performance - the stock has fallen by a third over the last year - suggests "scepticism among investors about the online strategy as well as concern over the somewhat hostile regulatory environment".