Broker tips: SuperGroup, Whitbread, Talvivaara

15th Dec 2010 14:47

Super cool clothing group SuperGroup has been placed under review by Peel Hunt as no current trading update was provided with the interim results.The group traded well "on all fronts," adds Stevenson, delivering a 71.7% increase in retail sales with earnings before interest and tax margins rising from 10% to 14.9%.Although the build up to Christmas is said to very encouraging, the broker highlighted the lack of a current trading statement.Nomura has raised its earnings forecast for leisure group Whitbread by 5% as the broker expects its positive operating momentum to continue."We believe Whitbread continues to offer attractive double-digit growth at a reasonable valuation and with a conservative balance sheet that is freehold asset rich," says Larkin.The Japanese broker upped its target price to 2,180p and confirmed its 'buy' rating.Broker finnCap has upgraded its recommendation on Finnish miner Talvivaara to a 'buy' as the company's good cash position gives it the potential to expand production growth.Analyst Joe Lunn says that "Last week's announcement of a €200m convertible loan provides an important injection of cash that gives Talvivaara greater flexibility to grow production over the next two years."The broker revised its new financial model using new cost information and forecasts the group to hit the upgraded target price of 672p (from 480p previously) within 12 months.