Broker tips: Schroders, Berkeley, Game

24th Jun 2011 12:09

Credit Suisse has reduced its forecasts for asset management firm Schroders given the decline in equity markets in the last month."We have reduced our AUM [assets under management] forecasts for this year and next year by 6-7% reflecting lower markets and slightly more conservative flow assumptions," said analysts Rupak Ghose and Gurjit Kambo.The broker doesn't see a recovery in retail (intermediary) flows until 2012 as a result of volatile markets and increasing risk averseness. A 'neutral' stance is maintained, while the target price is scaled back to 1,600p, from 1,700p.Berkeley Group produced an excellent set of full-year results, according to Panmure Gordon, who boosts its target price for the house builder by a fifth."Berkeley Group has produced an excellent set of full year results which in our opinion reflects the strength of its landbank, as well as market conditions in the better locations of London and the South East," said analysts Mark Hughes and Rachael Waring."The company has also announced the results of its strategic review in which it sets out its vision for investment and returning cash to shareholders through the next cycle."A 'hold' is maintained, but the target price is raised from 911p to 1,100p.Singer Capital Markets makes significant downgrades to its numbers for retailer Game Group as "conditions in the video market remain challenging.""Despite sales declines moderating in recent weeks, a rather lacklustre release schedule for the remainder of the year has prompted management to revise their forecast assumptions," said analysts Mark Photiades and Matthew McEachran. "We remain cautious on earnings prospects given the competitive pricing pressures from the grocers and mass merchants along with the medium term threat from digital distribution."The target price is nearly halved to 27p, from 49p previously, while a 'fair value' rating is kept.---BC