Broker tips: WPP, Rio Tinto, Thomas Cook

28th Nov 2013 12:04

WPP's share price was performing well on Thursday after UBS increased its target for the stock from 1,300p to 1,500p and raised its growth forecasts on the back of an optimistic outlook for the advertising and media giant."We argue that corporates will increase their investment in the services WPP provides to drive their top-line growth and gain market share in the US and Europe, improve branding in Asia and that Media, Digital and Data will see cyclical and structural growth, combining to deliver strong execution of WPP's strategy."Investec has maintained its 'buy' rating for mining group Rio Tinto after the company announced on Thursday that it plans to ramp up production at its iron ore business in Western Australia."While promoting a flood of new supply is not encouraging for the iron ore price longer-term, the reality is, in our view, that if RIO doesn't do it, others will. RIO is in the best position to capture market share through its low-cost, world class assets. A focus on brownfield expansion also provides some flexibility, enabling the expansion to remain sensitive to market conditions."Jefferies has kept a 'buy' recommendation and 200p target price for travel operator Thomas Cook after the company's full-year results and near-term guidance came in much better than expected. "Thomas Cook is delivering. Margins are improving, net debt has fallen and the balance sheet considerably strengthened, more cost savings are promised and, importantly, trading is robust. Yet the shares still trade at a discount to its major competitor, TUI Travel. We think this is becoming increasingly difficult to justify, especially given the likely higher growth rates at Thomas Cook Group."BC