Broker tips: HSBC, Glencore Xstrata, M&S, Anglo American

19th Feb 2014 12:13

Deutsche Bank has reiterated its 'hold' recommendation for banking giant HSBC ahead of its annual results next Monday, saying that these figures are 'much more important than usual'. The target price for the stock has been reduced slightly from 710p to 700p to reflect recent changes in the dollar-sterling exchange rate."We think this release takes on additional importance given the significant leg-down seen in HSBC's price-to-earnings ratio relative to the European bank universe and the substantial and imminent return of cash to Vodafone shareholders following the Verizon deal," said Deutsche Bank analysts Jason Napier and David Lock.Investec has raised its recommendation for commodities producer and marketer Glencore Xstrata from 'sell' to 'reduce' after updating its forecasts and valuation model following the group's recent 2013 production report.The target price for the stock has been raised from 308p to 328p, mainly due to higher sector multiples after the recent strong performance by many of its peers.Jefferies has upgraded its rating for High Street department store Marks & Spencer (M&S) from 'hold' to 'buy' on the back of the launch of the company's new website and in-house e-commerce platform.The broker hiked its target price for the shares by a quarter from 480p to 600p, saying that M&S is one of the "cheapest in our sector, yet offers one of the highest total shareholder returns".Exane BNP Paribas has lifted its target price for Anglo American from 1,600p to 1,650p after a better-than-expected set of annual results from the mining giant on Tuesday.However, the broker kept a 'neutral' rating on the stock, saying that the risk/reward is now "balanced" after its recent strong run. By the close on Tuesday, the shares had risen by over 20% since the start of 2014.BC