Broker tips: Sainsbury, SuperGroup, Michael Page

11th Jan 2012 11:17

Panmure Gordon has retained its hold recommendation and 350p target price on supermarket giant Sainsbury but has highlighted some positive takeaways from the firm's upbeat Christmas trading update today.Analyst Philip Dorgan says that the broker has kept its neutral stance on the stock as the shares "look reasonable value at these levels, given the company's cyclical stability and decent yield."Nevertheless, he adds: "It should also grow reasonably fast too - close to double digit medium term earnings growth is in prospect. We believe that returns will start to rise once the pig has passed through the python."Collins Stewart has reiterated its sell rating and 500p target price on trendy fashion chain SuperGroup despite the firm's Christmas trading update being well-received by the market this morning.Collins Stewart says the statement was as good as could be expected but still showed a "mixed picture with underlying UK retail sales improving but wholesale showing a decline," according to analyst Wayne Brown.The broker has kept its negative view on the stock despite the shares having underperformed the FTSE 350 by 40.3% over the last 12 months. "Confidence in forecasts remains low and until we enter into a period of upgrades and positive trading updates, we are unable to change our recommendation," Brown said.Both Peel Hunt and Panmure Gordon have kept their sell ratings on recruitment firm Michael Page International (MPI), saying that the outlook for 2012 looks to be deteriorating, while Prime Markets remains bullish.Peel Hunt said that the stock's valuation - trading at 26.4 times prospective earnings - does not properly reflect the weakness ahead. The broker keeps its 280p target price. Meanwhile, Panmure analysts Paul Jones and Mike Allen said: "we believe conditions may get much worse before they get better". They keep a target price of 281p.Nevertheless, Prime Markets has offered a contrasting opinion, saying that MPI's 25% rise in full-year gross profits along with its expansion into new territories should fuelled growth in 2012. The broker maintained its buy rating on the stock with a 438p target price.BC