Broker tips: BT, Kazakhmys, Electrocomponents

Nomura has turned negative on Kazakh miner Kazakhmys because it thinks the local currency may be revalued upwards, tax cuts may be limited and the shares fully reflect the strength in copper.The Japanese broker's stance on the shares is cut to 'reduce' from 'buy' with target price slashed to 1,065p from 1,300p previously.Kazakh central bank chairman Grigory Marchenko said on Wednesday that "fundamentals were right for Kazakhstan's tenge currency to appreciate". Nomura says a 10% appreciation in the currency would reduce Kazakhmys' EPS and NPV by about 6-7%.Its target on miner ENRC is also lowered, this time to 965p from 1,010p, although Nomura keeps its 'buy' recommendation on the shares as it thinks its long-term chrome price forecasts were "probably conservative".Telecoms group BT has doubled in value since its shares plunged to nearly 70p in March, but Nomura thinks they may have a little further to go. It has kept its 'neutral' rating on the stock, but raised its price target to 160p from 120p previously. "We expect the shares will continue to be well supported by the operational momentum, balanced by BT's need to invest in the business, reduce debt and support the pension scheme," it said. The broker still prefers BT over Vodafone, on which it has a 'reduce' rating. Yesterday, BT reported second quarter revenue in line with expectations and said it wants to cut costs by at least £1.5bn this year versus its old target of over £1bn. Electrocomponents is little changed today following an anticipated slump in half-year profits, but slower decline in revenue, prompting Ambrian to maintain 'hold' advice. The electrical parts firm reported a 15% drop in underlying revenue, or 8% on an actual basis, and 41% drop in pre-tax profit to £24.8m. It said the sales trend is improving, with a 17% year-on-year decline in the first quarter followed by a 13% slowdown in the second quarter and 8% slip in October. Ambrian says the results were broadly as expected, and reflect the operational leverage inherent in the distribution business. "That said, the recent sales data are more encouraging, and as the group lap the sharp falls of a year ago one would expect the revenue decline to narrow," continued the broker. Vodafone BT