Broker tips: ARM, M and S, William Hill

Jefferies has raised its target price for ARM Holdings from 466p to 485p but has maintained its underperform rating on the chip designer ahead of its first quarter results due next week."ARM is about to exit a no-new-news-phase with heavy reliance on Windows on ARM (WoA) and Mali graphics royalties into 2H12 - neither can materially lift fundamentals from here and the former may yet have sentiment tailwinds," the broker said."Investors have not abandoned the theme on this name but we think a lack of visibility on the long term potential has stymied sentiment."Investec has downgraded its rating for High Street giant Marks and Spencer after this week's fourth-quarter update disappointed - in its own words, the stock is 'off the Mark and lacking Spark'.The broker has highlighted three reasons to be bearish on the stock. Firstly it does not expect a near-term recovery the UK consumer environment. Secondly, cost guidance for the year-ending 2013 was seen as disappointing. Finally, "the jury is still out on the success, or otherwise, of the strategic plan".After cutting its pre-tax profit forecast for the year to March 31st 2013 by 5%, Investec cuts its target price from 325p to 295p.Nomura has reiterated its reduce recommendation and 190p target price for bookmaker William Hill despite the group's well-received first-quarter trading update.While the board says it remains confident in its full-year expectations, the broker thinks that consensus forecasts may increase slightly following today's statement as a result of the very strong gross win margin across OTC (over-the-counter) and on-line sportsbook.Nevertheless, the broker admits that it continues to prefer sector peer Ladbrokes "given LAD's catch-up potential from its digital division and the ongoing uncertainties surrounding the structure of William Hill Online," the broker said.BC