Broker tips: HSBC, London & Stamford, Game

15th Jun 2011 12:55

UBS cuts its target price for HSBC by 7%, from 708p to 655p, based on expectations of lower long-term growth for the global banking giant."We believe implicit in its goals are healthy EPS [earnings per share] growth and faster dividend growth. However, with news likely on these in March 2013, we have an age (in stock market terms) to wait," the broker said.UBS is reducing its revenue forecasts, but - "as the business becomes less credit intensive and we expect more disciplined cost control" - EPS downgrades are only modest. A 'neutral' stance is retained.Matrix raises its target price slightly for real estate firm London & Stamford after taking into account the attractive dividend yield and "management's ability to outperform"."At 134p, the shares are trading at a premium to the current NAV [net asset value] of 15%, which looks, in our view, relatively fully valued," analyst Miranda Cockburn said."However, taking into account the attractive dividend yield of 5.2% and management's ability to outperform, we are happy to increase our price target marginally to 137p from 135p and retain our 'add' rating, the majority of the expected performance coming from the dividend," she added.Peel Hunt has slashed Game Group's target price by almost 40% after the firm scaled back its sales guidance for the full year.However, Peel Hunt keeps a 'buy' rating, predicting that video gaming will be a growth market. 2012 will see the launch of the Wii U, which is expected to drive recovery and growth, "as previous console launches have in the past," said analyst John Stevenson.The target price now stands at 50p, from 80p previously.---BC