Broker tips: Schroders, Old Mutual, Ladbrokes

8th Aug 2013 10:55

Shares in Schroders fell sharply on Thursday morning as investors gave a cool reaction to the asset manager's first-half results. Panmure Gordon admitted that the first half beat its own forecasts, though maintained its 'hold' recommendation saying that the shares are expensive at 14 times earnings. "We are neutral on the shares on valuation grounds," said analyst Keith Baird.UBS has lifted its target price for Old Mutual from 195p to 205p after a 'solid' first half from the financial services group.Nevertheless, the broker retained its 'neutral' rating on the stock, saying that the stock's valuation provides "limited upside" to current share prices. The stock trades at a five-year high multiple of 0.95 times enterprise value.Investec has kept its 'hold' recommendation for High Street bookie Ladbrokes, saying that the company's update on current trading will likely prompt downgrades to consensus forecasts.Analyst James Hollins said: "We would expect the outlook statement to sufficiently spook the rest of the market into reducing FY13 figures down to our level (c5.0% below consensus). BC