Broker tips: HSBC, AMEC, IMI

11th Nov 2011 10:29

In a stark research note issued this morning, Evolution Securities has reiterated its sell recommendation for banking giant HSBC, saying simply, "HSBC isn't working!"The broker acknowledged that "come rain or shine", HSBC will probably remain a much-loved stock among the London "sell-side": "Never mind the so-called safe haven arguments. There is absolutely no excuse for owning the shares at all," said analyst Ian Gordon.While chief executive officer told analysts in a conference call that he hopes to hit the 'bottom end' of his 2013 targets - a 12% return on equity and a 52% cost efficiency ratio - Evolution said that is doesn't expected either to be achieved.A 600p target price is kept.Galvan Research has marked AMEC out as a buy, saying that it expects the engineering and project management services (EPMS) stock to retest "main post August intraday resistance of 960p plus"."In August AMEC shrugged off any uncertainties over the trading environment as it hiked the dividend payout and boosted expectations of an uplift during H2, helped by a recent acquisition," said Galvan's head of research Andrew Gibson.The broker says that subsequent contract wins - such as the Front End Engineering Design (FEED) contract for GDF SUEZ E&P UK and the EPMS contract for BP's Clair oil field - along with a "bear trap rebound in the shares at the start of October" now marks the stock out as a buy.UBS has maintained its positive stance on FTSE 100 engineer IMI but warned that investment case is under pressure.The broker says that IMI's second half "disappointed" as revenue growth slowed to 4%, from 8% in the first six months. Nevertheless, the firm kept its expectations for the full year. "It seems the self-help story is in full flourish though as margins have continued to surprise and the improved profitability is able to offset the weaker top-line," UBS said.The broker cuts its 2012 estimates by 4% ("reflecting more cautious growth rates") and reduces the target price from 1,000p to 950p.BC