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Broker tips: Centrica, SABMiller, BAE Systems

Thu, 19th Feb 2015 11:33
The consensus stance of a 'hold' at Centrica is likely to see downwards pressure, according to Hargreaves Lansdown Stockbrokers, after the energy provider disappointed the market on Thursday.Analyst Keith Bowman said the dividend cut is a "major blow" to investors with the search for income yield becoming ever harder in the current environment with interest rates at a record low. Meanwhile, the uncertainty surrounding a Competition and Markets Authority investigation into the industry "further undermines confidence".The abrupt resignation of SABMiller's chief financial officer Jamie Wilson is "certainly a surprise", according to Shore Capital."Judging from SAB's track record of financial performance and the successful delivery of the business capability programme, it is the loss of an important member of SAB's management team," said Shore Capital analyst Phil Carroll.Investec has kept a 'sell' stance on BAE Systems after the defence contractor's 2014 results and 2015 guidance came in below forecasts, saying the company faces a "number of headwinds" in the future.The broker said anticipated UK defence budget cuts following the elections and Strategic Defence and Security Review, potential delays to export orders, and growing net debt and pension liabilities "could limit future shareholder returns". Centrica BAE Systems

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