Broker tips: Miners, BT, Greggs

29th Apr 2013 11:17

Nomura has kept its cautious view on the European mining sector but has highlighted BHP Billiton and Rio Tinto as its top picks and upgraded its rating for ENRC and Anglo American from 'reduce' to 'neutral'.Nomura reckons that BHP Billiton, rated 'buy' at a price target of 2,400p, has a high-quality existing asset portfolio and "reliable" growth that consistently delivers. Meanwhile, Rio Tinto ('buy', 3,700p target price) is also said to have a quality asset portfolio and strong internally driven earnings growth with a new found capital discipline.Morgan Stanley has reiterated its 'equal weight' rating and 300p target price for telecoms giant BT, saying it remains cautious ahead of firm's full-year results on May 10th.Shares have re-rated strongly over the past year and upside to its target pice is now more limited, the broker said. The stock is "not so cheap", trading at 12.6 times earnings (on estimates for year ending March 2014).Panmure Gordon has cut its estimates for High Street bakery chain Greggs following a profit warning on Monday, but has maintained its 'buy' rating for the stock."This statement obviously casts doubts on the company's long-term growth, given the implied sales performance at its core stores, which are suffering from the demise of the High Street. The latter we believe is structural, not temporary and we believe that Greggs needs to move away from the High Street much faster than it currently plans."BC