Broker tips: Randgold, AB Foods, Smith & Nephew, Mining stocks

13th Oct 2014 12:57

Randgold Resources' share price was given a lift on Monday by analysts at UBS who upgraded the stock from 'neutral' to 'buy' after a recent slump in the value of the gold miner.The bank said that it still prefers precious metals peer Fresnillo over Randgold, but reckons that the risk/reward balance at the latter is now "attractive at current levels".The recent pullback in the share price of Associated British Foods presents a opportunity for investors to buy into the growth story at low-cost fashion retailer Primark, according to Societe Generale.The French bank has upgraded its stance on the food and retail group from 'hold' to 'buy' following a 25% drop in the shares since early July which has left the stock flat over 2014.Investec has cut its rating for medical technology group Smith & Nephew from 'add' to 'hold' after the company's disappointing results from a ulcer therapy study on Monday.The broker has made no changes to near-term forecasts because the treatment was not expected to be launched until 2017. However, the target price for the stock has been trimmed from 1,100p to 1,023p.Diversified mining stocks may come under further selling pressure in the short-term, but the long-term story looks positive, according to broker Canaccord Genuity.Analysts recommended investors "build positions in this period of share-price weakness". Canaccord has initiated coverage of Glencore and Anglo American with 'buy' ratings and started with a 'hold' at Vedanta. Rio Tinto is still rated a 'buy', while BHP Billiton was maintained at 'hold'.