Broker tips: Resolution, Tate & Lyle, AZ Electronic Materials

10th Dec 2012 11:22

Prime Markets has labelled insurance giant Resolution as a 'buy', following Monday's announcement that it is nearing the final stretch of its simplified governance structure.The broker said that, having touched 190p in late June, Resolution is looking like an "increasingly solid recovery play" within the insurance sector. Investec has reiterated its 'buy' rating and 850p target price for sweeteners and food products group Tate & Lyle, saying it was impressed by last week's investor seminar in Chicago.Analyst Martin Deboo said that the key takeaways from the meeting were "innovation and collaborative capabilities, plus a potential cost advantage".UBS has lowered its recommendation for speciality chemicals producer AZ Electronic Materials from 'buy' to 'neutral' on valuation grounds, removing the stock from its 'Pan-euro Midcap Key Call List'.The broker said: "We continue to like the fundamentals of the AZ investment case but we feel currently much of this is being priced in: 1) organic growth opportunities; 2) defensive margin profile; 3) strong cash generation; and 4) strong market positions."BC