Broker tips: TUI Travel, AMEC, Tesco, DS Smith

5th Dec 2013 12:07

Numis Securities has recommended investors to 'add' to positions in TUI Travel ahead of the tour operator's full-year results next week, hailing the company's outlook next year."In the UK, given improving consumer confidence, rising house prices, economic growth and increasing employment, we believe that the trading outlook for Summer 14 is increasingly positive."Canaccord Genuity has raised its rating for engineering and project management group AMEC from 'hold' to 'buy' on the back of its medium-term outlook for the nuclear market.The broker said it is increasingly likely that the UK will proceed with at least two - "but most likely four" - new reactor projects with one or more of the EDF, NuGeneration or Horizon groups. "We expect extensive work for AMEC both in design & procurement, as well as the innumerable public consultations, regulatory assessments, and environmental surveys required, and that this work is likely to be maintained to at least the end of this decade."Tecso's share price was under continued selling pressure on Thursday after the release of its disappointing three-quarter results the day before, with Panmure Gordon weighing further on the stock after downgrading its rating from 'buy' to 'hold'."Tesco was at pains to stress its profits performance remains in line with consensus forecasts for both 2014E and 2015E, but it's difficult to escape the impression that they are running to stand still, fighting against operational de-gearing in their core store portfolio."Investec has upped its target price for DS Smith from 340p to 350p after a better-than-expected first half from the packaging group, saying there is now upside risk to full-year forecasts.The broker retained its 'buy' recommendation for the shares. "We see these interim results as very solid, driven by improving volumes and market share gains, in line with the medium-term targets."BC