Broker tips: Kingfisher, Rio Tinto, Wolseley

30th Nov 2012 11:15

UBS has lowered its rating for B&Q and Screwfix owner Kingfisher from 'buy' to 'neutral' and reduced its target price from 300p to 290p, citing near-term risks.The broker said: "In most markets DIY demand remains depressed by a mix of low consumer confidence and weak housing markets, affecting big ticket and trade sales in particular. "While the UK may show some stability next year if mortgage lending improves, there are no signs yet that Continental Europe will follow suit."Jefferies has reiterated its 'buy' rating and 4,000p target price for mining giant Rio Tinto following yesterday's investor seminar in which the company announced aggressive open and capex cuts."For Rio Tinto, the combination of higher volumes, higher realised prices, and lower unit costs should lead to significant earnings growth. Our impression is that many investors are highly sceptical about the earnings growth story for Rio, and if growth is delivered in line with our expectations, Rio Tinto shares should perform well. This is one reason why Rio continues to be one of our top picks in the sector."Panmure Gordon has maintained its 'hold' rating and 2,500p target price for plumbing merchant Wolseley ahead of the group's first-quarter trading statement next week.The broker said that Wolseley's solid full-year results and a recent capital markets day in the US suggests a "steady Q1 outturn".BC