Broker tips: Legal & General, Shire, Anglo American...

4th Nov 2014 12:05

Broker Berenberg is advising investors to take cover in Legal & General after the insurer and pension provider doubled its annuity sales target for 2014 despite turbulence caused by a UK government pension shake-up. Berenberg has a 'buy' recommendation on L&G with a 265p price target.Analysts at Swiss banking group UBS have expressed their confidence in Shire achieving its $10bn sales target for 2020, as they upgraded their rating for the pharmaceutical group from 'neutral' to 'buy'.While the guidance "could appear optimistic", UBS said that management have "consistently over-delivered on guidance and expectations and we believe it is likely they continue to do so".Following an investor seminar this week on Anglo American's De Beers division, Investec reckons that the market will begin to recognise the potential value hidden in the diamond business. The broker has maintained its 'buy' rating and 1,588p target price for Anglo."In our view, De Beers represents the best asset within Anglo's current portfolio, which we believe the market will now begin to recognise," Investec said.Credit Suisse said on Tuesday that it is "turning more positive" on the European asset-management sector as it upgraded its ratings for Schroders and Jupiter Fund Management.Following market weakness at the end of the third quarter and beginning of the fourth, Schroders is now rated 'outperform' (previously 'neutral') and Jupiter is rated 'neutral' (previously 'underperform'). The bank also reiterated its 'outperform' recommendation for Man Group.Oil exploration and production (E&P) companies need to rebuild confidence amongst investors, according to analysts at Barclays, who said depressed oil prices are not wholly to blame for the recent weakness in the oil sector."We believe the sector's downturn mainly reflects investors' frustrations with excessive spending and poor expectation management, eroding their enthusiasm for the growth potential that remains," Barclays said. It named UK-listed E&P peers Ophir Energy, Premier Oil and Tullow Oil as its favourite stocks in the sector - all rated 'overweight'.