Broker tips: WM Morrison, Astrazeneca, M&S, Shanks

6th Nov 2014 13:00

Shore Capital has retained a 'hold' rating for supermarket group Wm Morrison after a mixed set of third-quarter results, saying that it is "critical" that trading improves over the pivotal Christmas period."It is essential that the group trades much more robustly in the current quarter and then displays more evidence than it is currently showing that its trading strategy is striking a much stronger chord with British shoppers. There are plenty of headwinds and bumps in the road facing Morrison's albeit a brighter future may yet transpire for its beleaguered investors."Upgrades to full-year guidance at pharmaceutical firm Astrazeneca may have reassured investors, but the average analyst still remains on the fence, according to Hargreaves Lansdown Stockbrokers.It said that the analyst consensus opinion is currently pointing to a 'hold', with the share price having jumped over 40% over the last year alone.Deutsche Bank has raised its recommendation for Marks & Spencer from 'hold' to 'buy' after its better-than-expected first half, predicting the start of a mutli-year margin recovery at the high-street retailer."We are increasingly convinced this is the beginning of a multi-year margin journey as M&S reaps the rewards of years of supply chain modernisation and, with higher confidence in M&S' long term margin potential we raise our [target price] to 510p [from 470p]," said analysts Charlie Muir-Sands and Warwick Okines.Broker Investec is advising investors to keep hold of shares in Shanks after the waste group revealed tough first half results but managed to avoid any nasty surprises."The long-term structural investment case remains, with management actions being taken to address the short-term issues, but evidence of a definite uptick in solid waste Benelux is needed before we change our view. Hold."