Broker tips: SSE, AB Foods, GKN

16th Apr 2013 10:44

Investec has lowered its recommendation for utilities giant SSE from 'buy' to 'hold' following the stock's recent strong performance that has taken it beyond the target price of 1,520p.Nevertheless, the broker said its positive view about the business remains intact."The investment case for SSE remains rooted in its continuing drive for efficiency in terms of assets in the ground, and disciplined capital deployment for growth. SSE's clear geographical focus (UK/Ireland), and strong position in renewables, fit well with our overall sector thesis," said analyst Harold Hutchinson.The re-rating at Associated British Foods (ABF) is now complete, according to Credit Suisse which downgraded its rating for the stock from 'outperform' to 'neutral'.The broker however has hiked its target price from 1,650p to 1,850p for the food ingredients and Primark owner, in line with current market prices. Shares in engineering giant GKN were under pressure on Tuesday after analysts at Barclays Capital said that after a strong run, the stock is "due for a pause".The broker downgraded its rating for the shares from 'overweight' to 'equal weight' but left its 258p target price unchanged. It said that this week's first-quarter update will be "burdened" by weaker auto production, seasonal weakness in aero and restructuring costs.