Broker tips: Miners, Carpetright, Imagination Technologies

26th Jun 2009 13:32

Barclays has been giving the miners the once-over and has moved some of its ratings as a result, with bid target Anglo American predictably seeing an upgrade.Barclays sees the share price of Anglo American hitting 2300p as the merger scenario with Xstrata develops. Barclays believes either Xstrata will abandon its "nil premium" stance and up its offer, or a white knight will emerge. Failing that, the merger approach will at least act as a kick up the backside to the Anglo management.Barclays previously had a price target of 1700p for the stock, which the bank has upgraded to "overweight" from "equal weight".Sector giant BHP Billiton sees its rating go the other way, down to "equal weight" from "overweight". BHP still has defensive properties and "one of the best [management teams] in the business" but Barclays believes that the premium investors are being asked to pay for these qualities is no longer appropriate in an environment where appetite for risk is returning.The BHP price target has been cut from 2100p to 1650p.Singer Equity Research has downgraded its rating of floor coverings retailer Carpetright reckoning the share price now represents fair value."Our change of stance [from a "buy" rating] reflects the re-rating that has been achieved. The shares are up c75% since going onto the buy list and firm evidence of stabilising UK sales is now required to advance any further," Singer says. The broker has a price target of 565p for the stock.Shares in chip designer Imagination Technologies have fallen back despite iPhone maker Apple lifting its stake in the company to 9.5%.Apple bought 11.5m shares in Imagination in the market, lifting its stake to 19.7m shares, and also subscribed for 2.2m new shares at 142.75p. The stake build-up follows a move by chip designer Intel which last week upped its stake in Imagination to 16%.Analyst Ian Robertson at Seymour Pierce is not convinced that having Apple or Intel as major shareholders in the company is without drawbacks."Too high a stake by Apple or Intel could well cause some existing or potential licensees to think twice about having Imagination's technologies at the core of their roadmaps. We understand that management has already received concerned phone calls from existing licensees," Robertson states.Robertson categorises Intel and Apple as investors, not buyers, and does not expect either party to raise its stake above 20% in the medium term and "would be very surprised indeed if they were to attempt to buy Imagination," though either company could buy Imagination from its small change.