Broker tips: Wm Morrison, AstraZeneca, Aquarius Platinum
Deutsche Bank has upgraded Wm Morrison to 'buy' from 'hold' saying good news in coming months should help the supermarket giant recover from weakness following its full year results in March.
The broker has lifted its like-for-like sales growth forecast for the year to 5% from 4% and expects Morrison's cost savings to be better than expected.
It trims its price target on the company to 310p from 315p, but said the company remains a good defensive investment in the current climate.
Elsewhere in the supermarket sector, Deutsche cut its target price on J Sainsbury to 360p from 450p.
ING has upgraded its recommendation and price target on AstraZeneca after the drugs giant secured a favourable settlement in its US patent dispute with India's Ranbaxy Laboratories over its blockbuster heartburn and ulcer pill, Nexium.
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It now advises investors to 'hold' AstraZeneca rather than 'sell' and raises its price target to 2,200p from 1,760p.
The settlement improves Astra's risk profile considerably, ING said.
UBS has downgraded its rating on Aquarius Platinum to 'neutral' from 'buy' on valuation grounds.
The Swiss broker noted the southern Africa-focused miner's share price has risen by 40% in the past year, compared with a flat performance from fellow platinum specialist Lonmin.
While acknowledging that Aquarius has performed well over the period, UBS says this is now largely priced in to the company's valuation.
