Broker tips: Schroders, Morrisons, Halfords

7th Nov 2013 11:07

Panmure Gordon has maintained its 'hold' recommendation for fund manager Schroders, saying that the stock's valuation is full after its third-quarter results.The broker said that the shares have flat-lined on a relative basis and look "fully valued" against his 2014 price target of 2,740p. "The shares have been flat against the market over three months but are up 40% relative over one year in line with other asset managers, of which one third has come from multiple expansion (which looks to have hit the limit) and two thirds from higher earnings."Morrisons is still a 'buy' despite a tough third quarter, according to Jefferies, with the outlook for the rest of the year on an improving trend.Jefferies said that the fall in like-for-like sales "reflects a slowdown in industry volumes, continued overhang from a lack of meaningful convenience/.com exposure and the non-repetition of 2012 coupons". Nevertheless, "strategic initiatives" will ensure that the latter challenges are being addressed, the broker said, with 100 openings of M-local stores confirmed for next year along with "what looks like a rapid geographic deployment of .com".Investec has reiterated its 'buy' rating for car- and bike-parts retailer Halfords and upgraded its forecasts after first-half profits came in 'materially ahead of consensus'.The broker said: "While still early days in [Chief Executive] Matt Davies' three-year recovery strategy, these results should help to reassure doubters that Halfords' brand still resonates well in consumers' minds." The target price has been raised from 460p to 520p.BC