Broker tips: StanChart, ENRC, Antofagasta

27th Jun 2013 12:56

Nomura has maintained its positive stance on Asia-focused bank Standard Chartered after its second-quarter results on Wednesday, saying that the stock is looking attractive relative to Asian peers.A 'buy' rating has been maintained but Nomura has reduced its target price for the shares from 1,880p to 1,830p. "We see 2013 consensus estimates stabilising which should help improve sentiment on the stock and help close the relative valuation gap."UBS has downgraded its rating for mining group ENRC from 'buy' to 'neutral' and slashed its target price from 285p to 230p to reflect the latest offer by the firm's founding shareholders and the Kazakhstan government.The broker reckons that 26% shareholder Kazakhmys could block the deal but is unlikely to do so. It said that under 100m shares, half of Kazakhmys' freefloat or 18% of the total company, would have to vote against the deal to block it (assuming a 100% turnout). However, "due to limited alternatives we believe Kaz shareholders are likely to approve the current offer".Investec has reduced its recommendation for Chile-based copper miner Antofagasta from 'reduce' to 'sell' and cut its target price for the stock from 829p to 691p to reflect a substantial weakening of commodity prices.The broker explained that its target price is based on a 50:50 mix of net present value (NPV) and 2013 price-to-earnings (P/E) multiples. Earnings forecast for this year have been cut by 34%, while the NPV has been slashed by 7.0%.