Broker tips: ENRC, Enterprise Inns, Carluccio's
HSBC has started coverage on the Kazakh mining company Eurasian Natural Resources Corporation with a 'neutral' stance and a 1,300p price target.
It noted a 90% rise in ENRC's share price since it joined the FTSE 100 in December.
Ferralloys will continue to be ENRC's main earner, even as it expands production of iron ore, alumina and aluminium production, HSBC said.
UBS has raised its recommendation on Enterprise Inns to 'buy' from 'neutral', saying it expects to see a turnaround in the tenanted pub group's declining beer volumes.
It maintains its 555p price target on Enterprise.
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The broker added that the rise in the pub group's share price since it announced it is eligible for REIT status on May 7 does not fully reflect the value this will add.
REIT conversion adds around 29% to earnings per share estimates for 2009 and 2010, UBS said.
Dresdner Kleinwort has downgraded its recommendation on Carluccio's to 'hold' from 'add' and cut its target price by 10p to 150p, despite remaining optimistic on the Italian restaurant chain's outlook.
Tuesday's interim results were in line with expectations, Dresdner said, adding that trading continues going well. It sees Carluccio's as one of the leading companies in its sector.
Dresdner said the lower price target and rating are due to its belief that a re-rating is unlikely.
