Broker tips: Tesco, IMI, Mitchells & Butlers

27th Nov 2012 10:46

Credit Suisse has retained its 'neutral' rating and 350p target price for supermarket behemoth Tesco ahead of the company's third-quarter results due on December 5th.Analyst Andrew Kasoulis said in a research report on Tuesday morning: "We do not expect quarter-on-quarter underlying improvement in key regions, which has largely been already flagged by market share and macro data."Investec has maintained its 'buy' rating for industrial engineering group IMI and raised its target price for the shares from 1,100p to 1,140p, saying that this month's third-quarter update showed the expected mixed of "softness" and "resilience"."IMI's Q3 IMS contained news of softness where it was expected - in the truck sector and general pneumatics within Fluid Power - and the recovery in Severe Service will probably be less steep than we anticipated. Nevertheless, we do expect steady progress from IMI and we believe that the shares are undervalued."Panmure Gordon has reiterated its 'sell' rating for pubs group Mitchells & Butlers after some worse-than-expected full-year results and a gloomy update on current trading.The broker kept its 225p target price for the shares, compared with Monday's closing price of 331p, implying 32% downside potential. BC