Broker tips: Miners, RSA, DMGT, Polymetal

31st Mar 2014 12:46

Credit Suisse has named Rio Tinto and Anglo American as its top picks in the metals and mining sector.Rio Tinto, rated 'outperform', remains the bank's preferred "FCF/value play" and its potential for shareholder returns is "larger and could be sooner than any of its peer group". Meanwhile, Anglo American, also rated 'outperform', was applauded for its restructuring potential with the bank confident that management can deliver targeted cost savings and address "problem assets".Numis Securities has reiterated its 'reduce' recommendation and 80p target price for RSA Insurance, saying that the stock's valuation is beginning to look "stretched".The broker, which updated its forecasts following last week's rights issue, said that after a 13% year-to-date total return the share price "now reflects much of the earnings recovery potential".The recent weakness in the share price of media conglomerate Daily Mail and General Trust has been overdone, according to Westhouse Securities, which has upgraded its rating on the stock from 'neutral' to 'add'.Analyst Roddy Davidson said: "We were pleased with the predominantly positive nature of last week's update and particularly the apparent progress being made in complementing the group's high quality B2B portfolio with an increasingly digitally focused media business."Canaccord Genuity has maintained its 'buy' stance on Russian gold producer Polymetal despite the company's 2013 results missing expectations, hailing the company's high grade asset basis and robust cash generation."2013 was a challenging year for most gold producers as they had to adjust to a substantial reduction in gold and silver prices. Polymetal was not an exception, but unlike most other producers it has a quality asset base, which allows it to generate robust cash flow even in a lower gold price environment," Canaccord said.BC