Broker tips: StanChart, BSkyB, Home Retail

2nd May 2012 11:07

In spite of the negative market reaction to Standard Chartered's first-quarter update on Wednesday morning, Investec has maintained its positive view on the bank saying that it sees a 'very clear buying opportunity'."Ahead of today's 'no numbers' Q1 interim management statement, the market had developed cold feet - consensus expectations anticipate a slight miss against FY12 guidance of double-digit revenue and earnings per share growth whereas, in our view, all evidence suggests that STAN remains comfortably on track," the broker said."We see a very clear buying opportunity," says Investec, which has kept its 1,800p target price unchanged.Jefferies has reiterated its hold rating and 700p target price for broadcaster and broadband group British Sky Broadcasting (BSkyB) on valuation grounds, but has highlighted the firm's 'decent' set of third-quarter results on Wednesday."Overall, it is a decent set of results even after adjusting for a £26m one-off tax benefit. Slower growth in Key Performance Indicators continued to highlight a slowdown in the business, but the performance was generally better than expected," the broker said.Merchant Securities has maintained its sell recommendation for Argos and Homebase owner Home Retail Group, saying that while the preliminary results were broadly in line, there are tough market conditions ahead."The outlook statement is weak and provides very little information on current trading. Low consumer confidence, inflationary pressures and uncertainty surrounding consumers' disposable income does not provide us with confidence for the future," said analyst Amisha Chohan."Fundamentally we believe the stock is overvalued, trading at a premium to the sector."BC