Broker tips: Polymetal, Tate & Lyle, Melrose

3rd Jun 2013 10:34

JPMorgan Cazenove has upgraded its rating for Polymetal from 'neutral' to 'overweight' and initiated its positive recommendation for gold mining peer Polyus Gold, citing an inflection point for earnings per share (EPS) next year."Providing a natural hedge against inflation and global risks (both currently subsided), gold could be at the point of minimal downside, supporting an attractive investment case for gold stocks with executable growth/stable costs," the broker said.Jefferies recommends investors to 'buy' shares of food group Tate & Lyle at a price target of 980p, highlighting the performance of its Speciality Food Ingredient (SFI) division."We were encouraged by the underlying trends in SFI for FY-13 and continue to believe the market under appreciates the medium-term growth potential off this enhanced platform and improved commercial capability," the broker said on Monday morning.Investec has reiterated its 'buy' rating and 300p target price for manufacturing conglomerate Melrose after the company confirmed that it is looking at the possible sale of its Crosby and Acco lifting divisions.There are rumours of a value for Crosby of $900m (around £600m), higher than the broker's initial £550m assumption, which "would represent upside to our assumptions and a good premium (approximately double) on the implied value that Melrose paid for Crosby as part of FKI," he said.