Broker tips: Shire, IHG, Domino Printing

24th Jun 2014 13:03

UBS has hiked its target price for Shire after the recent £27bn offer from AbbVie but kept a 'neutral' rating on the Irish pharmaceutical group, saying that potential M&A upside is offset by downside risk.The bank said it sees "high uncertainty" regarding the future of the company and recommended non-speculative investors to search for "more fundamentally undervalued opportunities that offer a sounder strategy".Credit Suisse has played down the likelihood of a Wyndham Worldwide bid for Crowne Plaza and Holiday Inn owner InterContinental Hotel Group (IHG), saying that recent speculation about a possible deal is "weak".Credit Suisse explains that the primary rationale for consolidation in the hotels sector is normally the removal of duplicate cost. "However, given Wyndham generates only 23% of [operating profits] from lodging with 77% vacation rental/timeshare, we would see the specific synergy opportunity from a Wyndham and IHG combination as modest," it said.Domino Printing's shares are "fully valued", according to Numis Securities which kept a 'hold' rating on the stock after the inkjet, laser and thermal printing products disappointed the market with a cautious outlook on Tuesday."We are downgrading [next year's] forecasts by 5% and estimate that consensus will need to downgrade by circa 11% to reach new guidance."BC