Broker tips: RBS, Standard Chartered, Domino's Pizza

26th Feb 2015 12:01

Investec has retained a 'sell' rating on RBS after 2014 results from the UK banking group missed market forecasts, saying that the stock's valuation was too expensive."RBS has now achieved a seventh successive year of heavy reported losses (2008-2014 inclusive) and we expect only a 'breakeven' performance in 2015," he said.A boardroom shake-up at Standard Chartered should be well-received, according to Credit Suisse, which believes that the banking group needs a "substantial overhauling" of its strategy.The Swiss broker maintained an 'underperform' rating, reiterating its view that Standard Chartered needs $6.9bn-11bn of capital to cover commodities provisioning and boost its common equity tier-one capital ratio to 11-12% by the end of 2015. "This would then require substantial overhauling of the strategy as the implied return profile would be an uninspiring 8-9%," it said.There is upside risk to the market's forecasts for Domino's Pizza, according to Numis Securities, which upgraded the stock from 'add' to 'buy' on Thursday after a strong annual report."Reflecting strong growth prospects and the price-to-earnings ratio being in line with the historic average, we are moving our recommendation to 'buy' from 'add'."