Broker tips: Reckitt, StanChart, AB Foods

25th Feb 2013 11:18

Investec has downgraded its rating for consumer products giant Reckitt Benckiser from 'hold' to 'sell' after US regulators called time on the company's exclusivity with its SUBOXONE product.Investec analyst Martin Deboo said that the news will likely be negative for the shares, with tablets in the US representing around 5.0% of group profits last year.Nomura has raised its target price for emerging markets lender Standard Chartered from 1,800p to 2,050p and reiterated its 'buy' rating, saying that the stock's year-to-date outperformance could continue."With improving trends in Asia, STAN should be able to regain some of its growth multiple, in our view. While challenging in the current global economic outlook, we believe STAN can manage to grow [earnings per share] at double digits, and even if growth falters to high-single digits, it can offset this by delivering positive operating leverage," the broker said in a research note.The good news is already priced in at food producer and Primark owner Associated British Foods (ABF), according to Canaccord Genuity which as retained its 'sell' rating and 1,450p target price for the stock.The stock - after having rocketed in recent weeks - is now trading at nearly 40% above its long-run average and the shares are pricing in "too much at these levels", according to Canaccord.BC