Broker tips: RBS, Imperial, Direct Line

3rd May 2013 11:47

Shares in Royal Bank of Scotland (RBS) were under heavy selling pressure on Friday as the bank's first-quarter results are likely to prompt earnings downgrades to consensus estimates, according to Nomura which kept its 'reduce' rating and 300p target price for the stock.Nomura said: "On first look, we sense downgrades in consensus estimates as the group is annualising pre-provision profits of £7.5bn against full-year consensus of £8.2bn, with impairments only modestly better than consensus. We retain our cautious view on the stock."Imperial Tobacco has been labelled as a 'buy' by Panmure Gordon after reports said that the UK government is to abandon its plan to introduce plain packaging for tobacco products.As the shares have been under pressure this year due to poor trading combined with negative regulatory newsflow, Panmure thinks that the news "should provide a fillip for the stock which we continue to view as being attractively valued".Investec has kept its 'buy' rating and 237p target price for insurance group Direct Line despite the company's first-quarter net earned premiums coming in below forecasts."The attraction of the business for us remains one of a company in recovery with plenty of flexibility," said analyst Kevin Ryan.BC