Broker tips: Rolls-Royce, BHP Billiton, Thomas Cook

28th Nov 2014 12:37

Investec has said that management at Rolls-Royce should take decisive action to repair investor confidence which has been "shattered" during 2014."[The] significant share-price decline this year should be a catalyst for Rolls-Royce's board to reconsider the optimal strategy going forward," the broker said. It kept a 'hold' rating but raised its target price from 850p to 900p for the stock.A challenging commodity-price environment isn't enough to change Morgan Stanley's mind about BHP Billiton, as it reiterated its 'overweight' stance on the mining giant on Friday. The bank lifted its target price for BHP shares from 2,050p to 2,200p."[BHP] ranks well versus diversified mining/oil peer on free cash flow (FCF), financial strength and valuation," Morgan Stanley said in a research report.Berenberg has lowered its rating for Thomas Cook Group (TCG) from 'buy' to 'hold', saying that the travel tour operator's ongoing transformation is "losing its gloss"."We have never been fans of the TCG business model and have always seen this as a structurally challenged industry," the broker said.