Broker tips: Schroders, Sainsbury, Antofagasta, RSA

18th Mar 2014 12:36

Credit Suisse has lifted its target price for Schroders from 2,810p to 2,900p after the asset manager beat consensus forecasts with its 2013 results earlier this month.However, the bank maintained its 'neutral' recommendation on the shares, saying that while it sees improving flow momentum in 2014 it is already reflected in forecasts and the stock's valuation.Jefferies has retained its 'hold' rating and 350p target price for J Sainsbury, saying that the supermarket chain's fourth-quarter trading update shows "weakening trends"."Ultimately it looks like the combination of discounter growth and lack of volume response to lower inflationary pressures may be catching up with Sainsbury, as it has already with the other UK majors."Canaccord Genuity has reiterated its 'buy' recommendation and 1,030p target price for Antofagasta, highlighting the large positive dividend surprise announced alongside the copper miner's 2013 results.Analyst Peter Mallin-Jones said: "The very high dividend payout meant much higher-than-expected withholding tax charges in the year pushing down the reported net income well below our and consensus estimates. Of earnings misses to have, we think one caused by paying out extra tax triggered by a dividend 3.6 times larger than expected is likely to be a palatable one."Berenberg has trimmed its target price for RSA Insurance from 112p to 92.6p and kept a 'hold' rating, saying there is plenty more to do in the company's turnaround.Berenberg said that while the "relatively weak" UK business is set to be restructured "it may not be straightforward to improve profitability". Meanwhile, even though the company has improved its balance sheet, its strength still trails that of its peers.BC