Broker tips: M&S, Babcock, DS Smith

6th Nov 2012 11:19

Seymour Pierce has raised its target price for High Street retail giant Marks & Spencer from 325p to 265p after a better-than-expected set of interim figures.However, with the stock having outperformed the FTSE All Share index by almost 20% this year, the broker keeps its 'hold' rating on the shares. Babcock's share price took a hit on Tuesday morning despite the engineering support services group reporting a solid set of broadly 'in-line' first-half numbers. With shares performing extremely well in the year-to-date, analysts believe that the stock is now up with events. Investec has downgraded its rating on the stock from 'buy' to 'hold' but has maintained its long-term positive stance on the business.Investec has also downgraded its rating for industrial group DS Smith from 'buy' to 'hold', saying that while its recent strong share price performance was warranted, it's time to 'pause for now'."Whilst DS Smith offers excellent EPS [earnings per share] growth and potential upside, we think after the strong run the stock has had, it is likely to pause for breath until the pre-close update during April 2013."BC