Broker tips: StanChart, Wolseley, Imagination Tech, PZ Cussons

11th Dec 2013 15:12

Investec has lowered its target price for Standard Chartered from 1,900p to 1,700p but has retained its 'buy' recommendation, saying that it doesn't see any capital issues at the emerging markets-focused lender.Analyst Ian Gordon said that the recent debate about capital which has weighed on the share price in recent weeks has been "contrived", highlighting that the bank's fully loaded Basel-3 core tier-1 capital ratio stood at 10.5% in June - "the strongest of any UK bank". "We expect sufficient visibility to emerge by Q1 2014 to drive both consensus upgrades and a re-rating. We see no capital issue at all."UBS has reduced its estimates slightly for heating and plumbing products distributor Wolseley but still labelled the stock a 'buy' due to its "solid" long-term growth prospects, providing a small boost the share price on Wednesday.According to the bank, Wolseley offers a "relatively low risk investment in the context of the construction sector [...] and we expect relatively stable earnings momentum from here, subject to unchanged FX rates".Jefferies has trimmed its target price for chip firm Imagination Technologies Group (IMG) from 392p to 364p after the company's first-half results and guidance disappointed on Wednesday.Nevertheless, the broker maintained its 'buy' rating, saying that the current valuation - stock trading at 15 times 2016 estimated earnings - "misrepresents the strength of the underlying fundamentals and the opportunities with MIPS in particular". It said it still sees IMG as an "attractive investment opportunity".Panmure Gordon has reiterated its positive stance on consumer products group PZ Cussons, saying that the stock continues to trade at a discount to others in the sector after its in-line first half."We think the consumer environment in both developed and developing markets remains difficult for consumer goods companies and currency weakness particularly in Australia and Indonesia impacts both on costs and translation back to sterling. However, we think PZC has delivered a strong H1 performance, with accelerating top line growth in Nigeria and continued double-digit growth in Indonesia particularly encouraging."BC