Broker tips: London Stock Exchange, easyJet, Debenhams

20th Nov 2012 10:25

UBS has said that it still sees 'attractive diversification' and upside potential in the long term at market operator London Stock Exchange (LSE), but has maintained its 'neutral' rating on the shares for now.The broker said: "We view LSE's diversification away from volume related revenue streams and the addition of index, technology and post trade services as starting to show encouraging signs of success (contract wins at FTSE, technology sales and small development in new asset classes). We also see some upside from cost control in the longer run. However we believe that this upside is fully reflected in the shares, we reiterate our 'neutral' rating."Nomura has reiterated its 'buy' rating and 650p target price for budget airline easyJet after the firm met expectations with its full-year figures on Tuesday."We recognise potential upside could come from allocated seating, yield management improvements and ongoing network developments," the broker said.Seymour Pierce has lowered its recommendation for High Street department store Debenhams from 'hold' to 'reduce', saying that the stock's massive surge over the past year has been unwarranted."We do not believe that Debenhams' recent results and outlook supports the 111% share price rally since September 2011," the broker said.BC