Broker tips: Weir, Drax, Marston's

30th Nov 2011 12:17

UBS has raised its target price for industrial engineer Weir from 2,400p to 2,500p, saying that comments from US peer Halliburton have made it much more optimistic.At last week's Reverse Energy Roadshow in Houston, Halliburton said that it expects the pressure pumping industry to raise capacity by 35% next year "and as industry #1 they are well placed to judge", UBS said.Despite the stock trading at 13 times forward earnings, the broker says that given the momentum, "it does not dampen our enthusiasm".Shares in coal-fired power station operator Drax were being weighed down comments from Nomura on Wednesday, which downgraded the stock from neutral to reduce."Although policy developments in the UK appear hostile to coal power stations, Drax will likely have a key role in the UK's energy mix for many years to come as it is a comparatively efficient and flexible plant. However, it is not clear what that future will look like as Drax is considering a conversion project that could see biomass constituting around 50% of its fuel - or more if the support is right," the broker said.Nevertheless, the target price is raised from 380p to 485p.Evolution Securities has reiterated its buy recommendation on pubs owner and ale brewer Marston's, saying that the group delivered exactly as it promised in its full-year results."The 'self-help' agenda is now yielding results and this should translate through to rising cashflow and to fund a progressive dividend for income-hungry investors," said analyst Nigel Parson.Evolution Securities keeps its 140p target.BC