Broker tips: Henderson Group, AstraZeneca, IAG

(ShareCast News) - Exane BNP Paribas took a look at UK asset managers, noting that their shares have sold off sharply, making for an enticing entry point."Equity market volatility is a risk to inflows, but historically the impact has been temporary and flows into other asset classes do not suffer as much. Unless the market falls sharply, we think the outlook is strong."Exane initiated coverage of Henderson Group at 'outperform' with a 310 price target, saying it's the bank's top pick among the UK asset managers. It said the company has the best flow prospects and margin dynamics and is the most exposed to growth areas in asset management.It started Man Group at 'outperform' with a 190p price target, saying there's a high probability the company will make further acquisitions in the next 12-24 months. "Our analysis of previous deals shows that they have been value-accretive," it said.Coverage of Aberdeen Asset Management was initiated at 'underperform' with a 270p price target. It said Abederdeen has concentrated exposures to three flagship desks from which it expects further material outflows - global, global emerging markets and Asia Pacific equities - which together make up 60% of group revenues.Deutsche Bank upgraded AstraZeneca to 'buy' from 'hold' and raised its price target to 5,700p from 4,850p.The bank said it's increasingly confident in AstraZeneca's ability to deliver a return to strong growth from a base in 2017.Deutsche said while execution risks remain, the shares offer positive risk-reward and a level of upside optionality not available elsewhere in EU large-cap pharma sector.It noted that AZN's shares have underperformed EU pharma by more than 10% in 2015 and are trading at a discount to peers on a 2016 price-to-earnings ratio.Things were looking up for up for IAG shares in 2016 given improved pricing on its Transatlantic routes, the pricing behaviour within the sector in general and the stock's then current valuation, analysts at Credit Suisse said on Monday.The company's pricing in the third quarter "inspires confidence", making underlying growth of 49% in earnings before interest and taxes in the second half of 2015 "likely", analyst Neil Glynn said in a research note sent to clients.Glynn estimated the company's revenues would expand by 38% in 2016 if Aer Lingus was included and by 31% if not.Underpinning his argument, he pointed out how IAG's valuation relative to that of the top ten global airlines illustrated a 20% re-rating potential, suggesting the stock should trade at a lease-adjusted EV/IC ratio of 1.8 or six times EV/EBITDAR.On the back of the above the Swiss broker upped its target price on IAG stock by 14% to 852p from 750p while reiterating its 'outperform' recommendation.