Broker tips: HSBC, Intertek, ICAP, Non-life insurers

UBS has maintained a 'neutral' stance on HSBC ahead of the bank's strategy update on 9 June, saying that management is unlikely to deliver what is needed.HSBC's Asian franchise is the bank's "jewel in the crown", UBS said, but it faces substantial challenges over the next few decades as Hong Kong integrates into the Greater China financial system. "In our view, rather than the whole group returning to Hong Kong, a quicker route to value creation could be a demerger of HBAP to shareholders."Product testing group Intertek was trading in the red on Thursday after Deutsche Bank downgraded its recommendation on the stock from 'buy' to 'hold'.While concerns the group's exposure to the oil and gas sector are already factored into the share price, Deutsche said the company has "more limited cross-selling potential than its peers in the long run"."There is opportunity for new chief executive officer, André Lacroix, to improve growth, but this may take time," the bank said.Numis downgraded ICAP to 'sell' from 'hold', saying the shares have run too far.It pointed out that the shares are up 36% over the last six months versus the FTSE all Share up 6% and said they are now overvalued relative to both peers and their historical average.Non-life insurers in the UK are currently struggling with tough conditions, though things should improve as motor pricing picks up, according to JPMorgan Cazenove.JPMorgan named Esure as its top pick with an 'overweight' rating, and upgraded Direct Line from 'neutral' to 'overweight'. It said that the risk-reward balance at the two companies was now positive due to anticipated improvements in UK motor pricing and attractive stock valuations.