Broker tips: HSBC, Glencore, Rio Tinto, Bovis Homes, LSE

23rd Feb 2015 11:57

An uncertain outlook at HSBC is likely to keep the market cautious about the global lender, according to Hargreaves Lansdown Stockbrokers, after 2014 results on Monday came in below forecasts.Head of equities Richard Hunter said: "Given the wider sectoral issues, HSBC has had a difficult year, with the shares having dropped 7% over the last 12 months, as compared to a 1.5% hike for the wider FTSE100 in that period. With so much fog remaining, the outlook remains less visible than investors would wish, and the market consensus for the shares as a 'hold' is likely to remain intact for the time being."UBS has lifted its rating for Glencore from 'neutral' to 'buy', saying the commodities trader and mining group is well positioned for a cyclical recovery.However, sector peer Rio Tinto has been hit by a downgrade by UBS from 'buy' to 'neutral' on the back of a "challenging" price outlook and lack of near-term catalysts.Strong annual results from housebuilder Bovis Homes received a lukewarm reaction from the market on Monday as they broadly met forecasts, though broker Panmure Gordon chose to reiterate its 'buy' rating saying that the shares remain cheap.Analyst Rachel Applegate said: "We maintain our belief that Bovis is fundamentally undervalued at current levels, and the stock is our key housebuilding pick."Numis Securities has lifted its target price for London Stock Exchange Group (LSEG) by 11% to reflect the integration of the Russell Index business which was acquired through the Frank Russell takeover last year.The broker raised its target for the shares from 2,074p to 2,300p after lifting its valuation for the Russell investment management division which LSEG intends to sell. However, Numis still maintained its 'hold' recommendation on the stock, saying the stock is "well up with events".