Broker tips: Randgold, KCOM, 888

2nd Apr 2012 12:32

Nomura downgraded its rating for gold miner Randgold Resources from buy to neutral late on Friday night on the back of concerns over the socio-political situation in Mali.Nomura does still expect a positive outcome and return to democracy in Mali and continues to rate Randgold as a "top-quality gold investment in the European market over the longer term". However, with the said risks in the country, it predicts a further near-term weakness in the shares.The broker said that a closing of borders is likely to affect Randgold's ability to produce at its Loulo/Gounkoto and Morila projects "and a question would arise on whether gold exports would also be delayed".The target price for the stock is slashed from 9,850p to 7,115p.Following KCOM's trading update this morning, finnCap has raised its target price for the telecoms group from 100p to 110p and reiterated its buy rating."FY trading update is in line with expectations, indicating sustained growth in broadband penetration in East Yorkshire, and continued development of recurring revenues in the national Kcom division, underpinned by the leadership position in the emerging Public Services Network market. New enterprise contact wins for a range of services across all brands provides further momentum," said analyst Andrew Darley."Growth across the sector is a challenge, but margin improvement is evident and KCOM rewards investment with visible dividend growth and the possibility of medium term outperformance," Darley said.Peel Hunt has raised its target price for online gaming group 888 Holdings from 63p to 75p, saying that is 'impressed by the scale of the turnaround'."The combination of a highly focused and able management team together with impressive technology, puts the group in a strong position to take advantage of opportunities in both relatively mature and emerging regulatory markets," said analyst Nick Batram.He said that last week's results impressed on many levels and shows that, after a difficult few years, the company looks "firmly back on track".The broker maintains its buy recommendation for the stock.BC