Broker tips: Persimmon, BT Group, Kier, Ocado

2nd Jul 2014 12:31

Hargreaves Lansdown Stockbrokers said that housebuilder Persimmon "continues to make hay while the sun shines" as it reported a solid second-quarter trading update on Wednesday."With accommodative monetary policy underpinning the housing market, interest rates unlikely to rise markedly for now, and the lending practices review leading to sustainable growth in the future, the company is in a sweet spot. Persimmon has capitalised on this environment," said Richard Hunter, Head of Equities at Hargreaves.Oriel Securities has downplayed concerns about a rising pension deficit at BT Group after a Financial Times article suggested that the telecoms company could face higher payments."The stock remains our top pick in the sector by far. Our price target is 530p per share, and we believe the risk to this is on the upside. We think BT is a growth stock, but still far from valued as such."Westhouse Securities has repeated its 'buy' recommendation for construction, support services and property outfit Kier Group, saying that "trading continues to encourage"."[Kier] is encouraged by its 'strong' pipeline of opportunities, which backs our view that the construction market in particular is recovering strongly," said Westhouse Analyst Alastair Stewart.Deutsche Bank has upgraded its rating for Ocado from 'sell' to 'hold', saying that the recent weakness in the share price better reflects the risk/reward balance.The bank said that risks still remain but the 42% sell-off of the stock since its peak of 617p in late-February means that there is now "limited downside to our reduced 330p price target [from 350p]".BC