Broker tips: Miners, Domino's, SDL

4th Apr 2013 11:00

Tradenext has highlighted opportunities for potential upside in the mining sector following the sell-off in recent weeks, though these opportunities are high risk, the broker warned."China growth rates are slowing but surely the prices of some of these shares are at silly levels and could easily jump 25% in a blink of an eye." The broker said that Kazakhmys, Petropavlovsk, Vedanta and Ferrexpo - where price-to-earnings multiples range from just 3.0 to 6.7 - "warrant closer attention".Panmure Gordon has raised its target price for Domino's Pizza from 360p to 380p after the group's first-quarter update came in well ahead of expectations, but the broker has retained its negative stance on the stock.While the like-for-like (LFL) sales growth in the first three months of 6.6% beat the 3.0% estimate, Panmure said that Domino's faces a "very challenging" LFL sales growth comparative in the second quarter of 8.1%Citigroup has upgraded its rating for translation and communications software group SDL from 'neutral' to 'buy', saying that expectations have been re-based following the recent sell-off."SDL has had a tough start to 2013 with the shares down 24% year to date reflecting the negative impact of increased investment on 2013 guidance. While it remains to be seen if SDL can gain some sales traction in its Technology business, we see upside to the shares even if it is partially successful."BC