Broker tips: Meggitt, IAG, Unilever

21st Jan 2013 11:02

Shares in aerospace engineer Meggitt were weighed down on Monday morning by concerns that one of the group's products could be linked to the grounding of Boeing 787 Dreamliners.However, analysts at Jefferies gave the company the benefit of the doubt, saying that it's too early to point fingers."[...] It is possible that Meggitt, as supplier of the B787 BCU, will be affected by some negative sentiment in the short term. We believe, however, that it would still be premature and quite possibly mistaken to identify lithium-ion battery technology as the villain of the piece."Given the expected progress made by the Spanish airline Iberia, Credit Suisse has lifted its recommendation for parent company International Consolidated Airlines Group (known as IAG) from 'neutral' to 'outperform'."If Iberia management can negotiate a satisfactory deal with labour, or unilaterally reduce headcount (plan B), we think Iberia should limit its 2013E operating loss to c€100m (despite 1Q weakness)," Credit Suisse said. This compares with the estimate €334m loss in 2012.Investec has upgraded its recommendation for consumer good group Unilever from 'hold' to 'buy' ahead of this week's fourth-quarter results."The principle catalysts for our change of view are the potential for margins to surprise on the upside in FY13 and a belief that the Developing Market business is still being undervalued," said analyst Martin Deboo.BC