Broker tips: Lloyds, Rolls-Royce, Euromoney

24th Sep 2013 12:26

Investec has upgraded its rating for Lloyds from 'sell' to 'hold' and lifted its target price from 65p to 76p on a more accommodative and targeted political and regulatory backdrop.Analyst Ian Gordon said that the Prudential Regulation Authority's (PRA's) decision to impose an "accelerated" 3% leverage ratio will cause all banks to constrain lending relative to their pre-existing plans. There are now reduced incentives for price-led competition in the mortgage lending market which should support net interest margin (NIM) progression at Lloyds, Gordon said.Power systems giant Rolls-Royce was a high riser on the FTSE 100 on Tuesday morning after Jefferies raised its target price for the stock from 1,250p to 1,400p and kept a 'buy' rating as it expressed optimism with 'TotalCare', its maintenance and repair services activities."As time passes, we have deduced and discovered more about TotalCare to a point where we see it as an opportunity rather than as a risk or threat," Jefferies said.Canaccord Genuity has upped its target price for business and financial magazine publisher Euromoney Institutional Investor from 1,100p to 1,188p, saying that the company is 'back on track' after a pick-up in trading in the fourth quarter.Analyst Simon Davies said that Euromoney's current valuation "looks attractive given the strength of the balance sheet, quality of earnings (with the highest proportion of subscription revenues within the peer group, at 51% of group sales), and high Emerging Markets exposure".BC