Broker tips: Rolls-Royce, Randgold, Michael Page

9th Nov 2012 11:04

Investec has retained its 'buy' rating and 930p target price for power systems group Rolls-Royce after the company's in-line third-quarter statement on Friday.The broker labelled today's trading update as "typically brief" but confirming full-year guidance for good growth in underlying revenues and profit, as well as break-even cash. "So another 'tick-in-the-box update' that is unlikely to materially move the shares," Investec said.Nomura has cut its target price for gold miner Randgold Resources from 7,400p to 7,075p and retained its 'reduce' rating on the stock, saying the business needs to execute to maintain its premium rating.The broker now says that fourth-quarter figures are under pressure, following the poorly-received third-quarter results. Nomura is forecasting full-year production of 819,000 ounces of gold, below Randgold's own guidance of 825,000 ounces, saying that while its possible that the miner will meet targets, "it will be a challenge".UBS has upgraded its recommendation for recruitment firm Michael Page (MPI) from 'neutral' to 'buy', saying that there is a more favourable risk/reward balance.In a separate staffing sector research note published today, UBS says highlighted many "structural challenges" that face the industry (such as fragmentation, alternative models and regulation) but also "opportunities" (like professional staffing).The broker said: "MPI is not immune to these pressures, but we continue to see it as relatively well-positioned within its peer group."BC