Broker tips: Rio Tinto, easyJet, N Brown

16th Jul 2014 12:19

Broker Liberum has repeated its 'sell' call on Rio Tinto despite admitting that the miner achieved a "solid" second quarter in terms of production."Rio still looks vulnerable to us in the second half as the impact of sustained higher iron ore production hits the market, with consensus numbers reflecting a recovery in iron ore prices, lump premiums and a reduction in discounts." Numis Securities has maintained a positive stance on the shares of budget airline easyJet, saying that next week's third-quarter update from the firm should reassure investors."The stock has been under considerable pressure of late (down 28% over three months) with the market concerned about a number of issues [...]. There is quite a long list of worries, but we believe that the share price reaction has been overdone and expect a relatively reassuring Q3 update." UBS has raised its rating for retailer N Brown from 'neutral' to 'buy', saying that the business offers "online growth at a high street price"."N Brown has de-rated significantly in the last few months. With trading expected to improve in the second quarter we think this has been overdone and investors will re-engage with the stock once it prints better like-for-like sales," the bank said.BC