Broker tips: Persimmon, Berendsen, PZ Cussons

2nd Jul 2013 11:10

Jefferies has kept its 'hold' rating and 1,162p target price for UK house builder Persimmon despite an upbeat second-quarter trading update, saying that the stock's valuation looks 'full'.Analyst Anthony Codling said that the statement was "robust" and backed up its view that the government's stimulus plans of 'Help to Buy' and 'Funding for Lending' are working. Nevertheless, the broker chose to remain cautious, highlighting that sector peers Barratt Developments, Bovis Homes and Taylor Wimpey (all rated 'buy') are trading at cheaper price-to-book multiples.Panmure Gordon has upgraded its rating for consumer-products group PZ Cussons (PZC) from 'hold' to 'buy' after the company announced the purchase of Rafferty's Garden on Tuesday."The shares have pulled back lately to around the 350p level from c.400p, and we think this represents an attractive entry point," the broker said, as it raised its target price for the stock from 400p to 411p.Investec has lifted its recommendation for European textile business Berendsen from 'add' to 'buy' after the firm issued a positive first-half trading update on Tuesday morning in which revenue growth came in ahead of expectations.The broker said that the stock's valuation is looking increasingly attractive, "with the rating looking undemanding for what is a fundamentally defensive business that continues to boost growth through a group-wide best practice programme."