Broker tips: IAG, GlaxoSmithKline, Shell

14th Aug 2013 10:37

Shares in British Airways owner International Consolidated Airlines Group (otherwise known as IAG) were trading higher on Wednesday morning after some comments from Nomura and Deutsche Bank who both reiterated their 'buy' ratings for the stock.Nomura raised its target price for the stock from 283p to 335p, saying that the company shows the "best restructuring momentum" amongst European airlines.Deutsche Bank also stayed positive, saying that the blocked merger of US Airways and AMR Corp - although a negative for IAG given its joint venture with AMR - does not change IAG's medium-term profit targets.JPMorgan Cazenove has upgraded its rating for pharmaceuticals giant GlaxoSmithKline (GSK) from 'underweight' to 'neutral', saying that the upside from upcoming catalysts now balances out earnings risk.The US bank said: "Whilst we believe consensus [company-collated] expectations for 2014 core EPS could prove slightly too ambitious, we see numerous datapoints over the next six months that could drive upgrades."Barclays Capital has upgraded its rating for oil major Royal Dutch Shell from 'equalweight' to 'overweight', saying that the stock should trade at a premium to its peers.Barclays said that Shell can fund both capex and dividends from organic cash-flow without relying on ambitious growth targets or divestments, which places it in a "unique positive" amongst other European Oil Majors.BC