Broker tips: Lloyds, Diageo, IAG

12th Nov 2012 11:34

UBS has raised its target price for UK banking group Lloyds from 44p to 46p, saying that the bank's third-quarter results showed 'solid progress and improving momentum'.However, the broker remained cautious, saying: "We remain 'neutral' on Lloyds and the other UK domestic banks as we believe that there is a low, but non-zero, risk of regulatory driven dilutive equity raising."Nomura has raised its target price for beverages giant Diageo from 2,000p to 2,100p and retained its 'buy' recommendation for the stock, following last week's deal to buy a stake in Indian spirits group United Spirits Limited (USL).The broker said: "Announcement of this deal ahead of Diwali next week means that the celebrations can really begin, with the company gaining control whilst retaining a significant local minority interest."Credit Suisse has raised its target price for International Consolidated Airlines Group, otherwise known as IAG, but has retained its 'neutral' stance on the stock.After factoring in a lower fuel bill next year (given recent jet fuel spot price weakness) and 2% lower labour costs, the broker has raised its underlying earnings before interest and tax (EBIT) forecast for 2013 from €241m to €372m, though this is still 25% behind the Reuters consensus estimate of €495m. As such, the target price for the shares has been raised from 140p to 184p.BC