Broker tips: RBS, ITV, TUI

14th May 2015 11:02

Royal Bank of Scotland "remains on the right strategic track" despite its recent underperformance against the sector, according to analysts at JPMorgan Cazenove. The US broker said that a sell-down of the government's stake in RBS and the resolution of ongoing litigation charges will be "key milestones" for the bank's long-term turnaround. "However, in our view the attractions of the shares lie well beyond our 12-month time horizon, so we remain 'neutral'."Numis Securities has shifted its rating on broadcaster and producer ITV from 'buy' to 'add' following the recent strong performance by the stock.With the company to benefit from the Rugby World Cup in the autumn amid the positive UK macro backdrop, the broker said it sees upside to advertising revenue estimates for the full year. "We raise our target price from 275p to 290p though after their strong recent run we now rate the shares as an 'add' (was 'buy')," Numis said.First-half results from TUI Group were strong, though an absence of catalysts from the travel tour operator has prompted Exane BNP Paribas to cut its rating on the stock from 'outperform' to 'neutral'.Exane said it felt a little underwhelmed with TUI lack of surprises with its long-term guidance and sees "no real attractions for the stock here". "We came into the investor day hoping for bullish guidance, increased revenue synergy potential and some colour on asset sales," said analyst Roberta Ciaccia.