Broker tips: Tesco, Lloyds, ASOS

9th Dec 2014 12:19

A surprise profit warning from Tesco on Tuesday sent its share price plummeting, though analysts still see more downside to the stock which has already halved since the start of the year."Unfortunately, there remains only one constant amidst the turbulence, which is the market consensus. This remains rooted at a 'sell' and seems likely to remain so," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.Lloyds Banking Group is the most at risk in the UK banking stress tests, according to Citigroup, ahead of the results due next week."All listed banks are likely to 'pass', in our view, but we view Lloyds as most at risk, due to its large exposure to UK mortgages," the broker added. While the bank's risk profile has "improved markedly" over the past two years, Citi said that the company is still not without risk.An in-line trading statement from online fashion retailer ASOS wasn't enough to change analysts' opinions on Tuesday as a number of brokerages remained on the fence about the stock.Peel Hunt, The Share Centre and Cantor Fitzgerald all retained their 'hold' recommendations, citing valuation concerns despite the recent sell-off. Peel Hunt in particular said that there is "no reason to chase" the stock as the shares look "overvalued", especially considering the downside risk to long-term margin targets.