Broker tips: Rio Tinto, Aggreko, Capita, Rightmove

9th Jun 2014 12:59

Credit Suisse has maintained its 'outperform' rating for diversified mining group Rio Tinto, saying it prefers the UK-listed stock over Brazilian rival Vale.Credit Suisse believes that the market is "correctly anticipating" a return to positive free cash flow and shareholder returns at Rio Tinto, while Vale embarks on a capex-intensive period to increase volumes. The bank sees the potential for Rio to outperform value by at least 20%.Panmure Gordon has cut its rating for temporary power and temperature control services firm Aggreko from 'buy' to 'hold' following a recent site visit to the company's Americas operations.While the regional business is "setting the foundations for further growth" , the broker said: "until these potential prospects and opportunities translate to profits, we feel the shares look high enough after a recent run."The share price of UK business process management and outsourcing group Capita received a boost on Monday from Numis Securities, which raised its recommendation on the stock from 'hold' to 'buy' and hiked its target price from 1,152p to 1,365p.Analysts Julian Carter and Steve Woolf said the company is "gearing up for growth" after strong contract win momentum and acquisitions made year-to-date. Canaccord Genuity has kept a 'buy' recommendation and 2,600p target price for online estate agent portal Rightmove, downplaying the potential impact from newcomer to the market, Agents' Mutual (AM)."We continue to expect Rightmove to be able to maintain membership at current levels," said analysts Robin Savage and Arun Melmane.BC