Broker tips: Banks, Chemring, DCC

Investec has downgraded its ratings for banking peer HSBC and RBS from 'buy' to 'hold' in separate research reports, reiterating its preference for rival Barclays.The broker pointed out that HSBC has marginally outperformed the FTSE 100 so far this year and now trades within just 4.0% of its 57-month high. The 740p target price for HSBC has been maintained.As for RBS, after an impressive share price recovery after the stock was "oversold" in June, the stock is no longer "absurdly cheap". After raising its target price from 335p to 340p due to a strongly recovering UK mortgage market, Investec said it implies little upside to current prices.UBS has downgraded its recommendation for defence technology firm Chemring from 'buy' to 'neutral' on the back of cuts to short-term profit forecasts.The broker has reduced its target price from 360p to 330p after lowering earnings before interest, tax and amortisation (EBITDA) estimates for the years ending October 2014 and 2015 by 11% and 13%, respectively. "Our new forecasts reflect a lower base of underlying EBITA in FY13 than we had previously forecast and the restructuring plan presented at H1," UBS said.A first-quarter trading update from sales, marketing, distribution and business support services firm DCC was welcomed by the market on Friday, with Jefferies providing an extra boost after lifting its target price for the stock and keeping a 'buy' rating.In spite of the 30% rise so far this year - compared with the FTSE All-Share Index up just 13% - the broker sees more upside to the stock, raising its target price by 3.0% from 3,100p to 3,200p.BC