Broker tips: Lloyds, Shell, Morrison

1st Nov 2012 11:10

Nomura has maintained its 'reduce' rating and 35p target price for Lloyds, saying that while the bank's third-quarter figures were in line with estimates, they are not going to drive upgrades for the core.Nomura reckons that these results are likely to reassure investors that management plans are on track. "However, with the stock already rallying significantly over the year and no material upgrade to core earnings, we would not expect sustained strength on the back of these number and see the +7% opening print this morning as an overreaction on short covering," the broker said.Shares in oil and gas titan Royal Dutch Shell have been rather subdued over the last year, prompting Investec to upgrade its recommendation for the stock from 'sell' to 'hold'.The broker said that the company has "loadsamoney" as it continues to generate substantial cash flows. "We expect the priority to be re-investment but the company could afford a more generous dividend if it choses to."Seymour Pierce has downgraded its rating for supermarket group WM Morrison from 'hold' to 'reduce' and cut its target price for the shares from 300p to 250p ahead of the firm's third-quarter results next week.Analyst Kate Calvert said: "Recent market share data points to continued deterioration in sales trends and so a weak number is expected by the market next week". Morrison will be reporting on November 8th.BC