Broker tips: Lloyds, Man Group, Imperial

1st May 2012 11:36

Investec has reiterated its buy recommendation and 40p target price for Lloyds Banking Group following the bank's well-received first-quarter results on Tuesday morning."In the recent past, financial updates from Lloyds often sounded like a desperate plea for help - but no more," Investec said in a research note."If Antonio [Chief Executive] still needs cheering up after the 6% share price rebound of the past eight days then the underlying trends visible in today's numbers could be just the tonic," the broker said.Peel Hunt has downgraded its rating for hedge fund manager Man Group from buy to hold and cut its target price from 160p to 110p, saying that today's first-quarter update 'will do little to quell fears' surrounding the company.Overall, the broker says that this morning's statement is broadly as expected with asset flows remaining relatively weak, "particularly in the higher margin product areas"."Whilst Man undoubtedly has strengths such as the range of funds and distribution network, there remain a number of uncertainties in the short term and we therefore feel a hold recommendation is more appropriate."Jefferies has maintained its hold recommendation and 2,230p target price for cigarette manufacturer Imperial Tobacco following the group's in-line first-half results announced this morning."No real surprises with IMT's in-line set of first-half results. Tone from management is upbeat, with sales momentum building into H2 on the back of increased innovation," the broker said."Would not expect much change to consensus numbers on the back of these results, but positive tone from management into H2 will give the market some comfort on the top line delivery in H2."BC