Broker tips: UK banks, Morrisons, Admiral

11th Sep 2014 11:55

Investec has recommended investors to "overweight banks" exposed to Scotland given its prediction of the 'no' campaign coming out on top in the Scottish referendum."We reaffirm our call for those with a short-term (eight-day) investment horizon to overweight banks with actual or perceived exposure to Scotland: Lloyds ('buy'), TSB ('hold') and RBS ('hold')," said analyst Ian Gordon. He said this call is "predicated on an expectation of a 'no' vote" when the referendum takes place on 18 September.Analysts at Shore Capital have placed their long-standing 'sell' recommendation for Morrisons under review after the supermarket group beat its profit forecasts for the first half.They said: "It is too early for us to over-react to a demonstrably better trading trajectory, but if it is sustainable then the model that management presented in March may be starting to gain some traction, something that would put some support into the group's share price."The recent share-price weakness at Admiral has overlooked the positives at the insurance firm, according to Numis Securities which has upgraded its rating on the stock from 'add' to 'buy'.The broker said that after recent falls there is an "attractive entry valuation" for potential investors and customer growth at the company highlights its long-term prospects.