Broker tips: Standard Chartered, Thomas Cook, Mitchells & Butlers

22nd Nov 2011 12:50

Following their attendance at a set of recent company presentations, analysts at Nomura were writing today that, "Overall, we came back from the trip thinking Standard Chartered´s (STAN) target of double-digit revenue growth for 2011 and beyond is achievable."More specifically, they cite the bank´s chief financial officer as having said that STAN is on the cusp of a remarkable few years. Likewise, the presentations drew attention to the existence of significant growth opportunities not just in markets such as China and India, where the outlook for growth "stands out", but also in Hong Kong and Singapore. Nomura has decided to reiterate its buy recommendation on shares of Standard Chartered at the same time that it has slightly raised its forecasts. Evolution Securities has downgraded its rating on Thomas Cook from neutral to sell, after the firm's announcement to delay the release of its full-year results due to finance renegotiations.Evolution analyst James Hollins said: "We initiated on the tour operators on 10 November 2011, with a bearish view, describing the industry as having an awful outlook. Based on Thomas Cook's announcement this morning, we were not negative enough."The broker said that it was wrong to assume that the stock, trading at three times earnings, was cheap enough.The target price comes down from 55p to 35p.Charles Stanley has upgraded its rating for pub group Mitchells & Butlers from hold to accumulate, following the firm's full-year results announced earlier today."We upgrade our recommendation to accumulate given an unchallenging valuation and the potential for genuine concentration on operational enhancements, along with the continuation of some promising expansion plans," Dawson said.However, the broker says that if dividend yield is an investment requirement, then investors will be better off buying into sector peers Marston's or Greene King.BC