Broker tips: RBS, IHG, Glencore Xstrata, Smiths Group

21st Feb 2014 12:42

Numis Securities has reiterated its 'add' rating and 374p target price for banking group RBS ahead of its 2013 results next week.The results, which are due out February 27th, are expected to see the bank report a statutory loss of £7.2bn, which includes the £4.5bn upfront provision for the new 'Internal Bad Bank', Numis estimates.Credit Suisse has cut its recommendation for Holiday Inn and Crowne Plaza owner InterContinental Hotels Group (IHG) from 'neutral' to 'underperform' and reduced its target price from 1,980p to 1,810p, saying investors are paying a "peak price for off-peak performance".The bank pointed out that the stock is trading just 4% below its all-time high and its current operating performance is weaker than history and other peers in the sector.Mining group and commodities trader Glencore Xstrata was trading in the red on Friday morning after JPMorgan Cazenove cut its rating on the stock from 'overweight' to 'neutral', saying that its peers have overtaken it in terms of capital returns potential.JPMorgan said that upcoming sale of the Las Bambas copper project in Peru presents downside risk for the shares if a deal - proceeds speculated at around $4.5bn - is not concluded before the 2013 results announcement on March 4th.UBS has downgraded its rating for technology and engineering firm Smiths Group from 'neutral' to 'sell' and trimmed its target price from 1,450p to 1,340p, saying that it has lower growth potential than others in the sector."Smiths comes out in the bottom quartile on our sector quality analysis looking at historical performance. Going forward, a forecast three-year earnings per share compound annual growth rate of c5% is also at the low end of the group," said analysts Mark Fielding and Robbie Capp.BC