Broker tips: RSA, Aggreko, Synergy Health

16th Dec 2013 11:34

UBS has raised its recommendation for troubled insurance firm RSA from 'neutral' to 'buy', saying that the fundamentals of the business remain unchanged despite last week's profit warning and exit of its Chief Executive Officer (CEO)."While there are clearly unresolved issues, the extent of the sell-off means that the risks are more balanced to the upside in our view. Following the recent drop in the share price, we upgrade to 'buy' with a 100p price target [from 108p perviously]."Aggreko investors "should be able to sleep slightly easier tonight", according to Investec, which reiterated its 'hold' rating for the stock after the firm's reassuring trading update on Monday."Aggreko's interim management statement should be seen as a welcome update, at first glance in any event, with no warning on profits (indeed the reverse, helped by a small provision release) and a year-end net debt position better than we expected," said analyst John Lawson. "We expect a better day for the stock," he said.Canaccord Genuity has upgraded its rating for Synergy Health from 'sell' to 'hold', saying that the company's six new contracts in the US increase the revenue visibility and should drive organic growth."Synergy is not cheap, but is currently trading at a discount to both the Support Services peer group," explained Analyst Julie Simmonds. "Since today's announcement reduces the risk to forecasts and gives greater visibility to growth we increase our CG Quest based target price to 979p (previously 891p)."BC