Broker tips: Reckitt, GKN, RSA, Coca-Cola HBC

22nd Oct 2013 12:06

Investec has upgraded its rating for household products firm Reckitt Benckiser from 'sell' to 'hold' on the back of the company's upbeat outlook with its third-quarter results.Analyst Martin Deboo said he was impressed by the company's "confident tone and strength in depth" in its outlook. He added that a "demanding" valuation prevents him from becoming more positive on the stock. "But we think the vista is getting sunnier for Reckitt. Move to 'hold'."Jefferies has kept its 'buy' rating and 275p target price for engineering giant GKN after the company's well-received quarterly results on Tuesday.The broker said that in a seasonally weak third quarter, results have come in ahead of its expectations: "Apart from Land Systems, where there was an 8% organic decline in sales (1H13, -8%), everything else did pretty much what one might reasonably have expected against a trading backdrop somewhat stronger than that in 1H13, in our view."Analysts at JPMorgan Cazenove have raised their target price for insurance firm RSA, saying that operations in the UK are starting to "turn the corner".JPMorgan has lifted its target price from 132p to 141p and kept an 'overweight' rating on the stock, saying that the shares trade at just 8.8 times earnings, a discount to the wider UK non-life insurance sector which trades at an average multiple of 11.Credit Suisse has retained its 'neutral' stance on Coke bottling firm Coca-Cola HBC (CCH) ahead of its third-quarter results next month, saying that the company is "still lacking its fizz"."Volumes in CCH's markets suffered badly post the financial crisis and have yet to recover. There has been no growth for five years now. Full-year volumes this year look set to be down again after what we expect to be a soft Q3."BC