Broker tips: Standard Chartered, Serco, Tate & Lyle

31st May 2011 12:31

Standard Chartered has been upgraded to a 'buy', from 'neutral', by Nomura, which says that the Asia-focused bank is delivering growth in a challenging environment."For investors looking for top-line growth within a UK & European banks sector where growth is often a scarce commodity, we believe that Standard Chartered remains well positioned for the long term," the Japanese broker said.The target price is raised to 1,800p, from 1,770p.After Serco's recent share price underperformance, Prime Markets thinks that Tuesday's acquisition of Intelenet should "safely propel" shares higher.The support service provider has bought India-based business process outsourcing firm Intelent for up to £385m. "The acquisition is in line with Serco's strategy which is focused on driving organic growth, supplemented by strategic acquisitions of skills and capabilities to enter new markets and sectors where it sees strong opportunities to enhance growth and margins," said Prime Markets' head of dealing Richard Curr.The broker's target price for the stock is 590p, and a 'buy' rating is maintained. UBS raises its target price for Tate & Lyle and fine-tunes its year-ended-2012 estimates following the food and ingredients group's full-year results, which were broadly in-line with expectations."Whilst CEO Ahmed stresses his 'focus, fix, grow' programme will take 2 years to implement, it looks likely that, in the meantime, economic recovery and (the umbrella of) higher sugar prices will allow him to deliver solid double digit EPS growth this year," said analyst Alan Erskine.However, UBS is reluctant to turn more positive as the stock is trading on an enterprise multiple slightly above the average of the last decade.A 'neutral' rating is retained, while the target price is increased by 8% to 595p, from 550p.---BC