Broker tips: IAG, ENRC, ARM

11th May 2012 11:32

Investec reiterated its sell rating and 100p target price for International Consolidated Airlines Group (IAG) on Friday morning, saying that the firm's first-quarter results highlight the challenges ahead.Investec highlights IAG's outlook as being rather weak, with the group saying that the Spanish (and wider Eurozone) macro-economic backdrop has deteriorated, as seen in Iberia's results."Management has guided to EBIT [earnings before interest and tax] break-even for the year, including BMI losses. We see this as optimistic and place our forecasts under review. Overall we believe it is right to remain cautious on the shares," Investec added.UBS has cut its target price for mining group Eurasian Natural Resources Corporation (ENRC) from 800p to 700p following its worse-than-expected first-quarter production figures.Nevertheless, the broker maintains a buy recommendation for the stock, saying that it thinks that ENRC will restructure its international assets in 2012 and this should crystallise value and potentially drive a re-rating.With concerns about shipment volumes at chip designer ARM Holdings having weighed on the stock in the recent months, finnCap says that now offers a good buying opportunity and has upgraded its rating from hold to buy.Analyst Lorne Daniel says that despite any quarterly issues, ARM is still "extremely dominant" in the mobile market and is likely to move beyond that into the server space. The broker has left its target price at 575p.BC