Broker tips: Lloyds, Aldermore, Aveva

20th Apr 2015 11:20

News that the Conservatives want to sell discounted shares in Lloyds to the public if they win the election should not alter the investment case for the bank, according to Investec.However, the broker kept a 'hold' rating on the stock, saying that the inevitable sale of the government's stake, whoever comes into power, will weigh on the share price over the next 12 months.Challenger bank Aldermore has an interesting growth story, according to Credit Suisse, though the broker initiated coverage with a 'neutral' rating.The Swiss bank said the main attraction of Aldermore is its "simple and legacy-free business model, well-positioned to tap into the high profitability UK retail and commercial segment". However, it said: "We are more cautious about the long-term sustainability of 20%+ returns through the cycle."A short trading update from engineering software group Aveva received a mixed reaction from the market on Monday, though Numis Securities reiterated its positive rating on the stock.The broker, which maintained an 'add' recommendation, said the company is a "world-class business" with a powerful position and long-term favourable product cycle, despite challenges affecting some markets. The stock's current valuation "does not feel aggressive to us", it said.