Broker tips: Legal and General, Randgold, Smith and Nephew

Nomura has maintained its buy rating and 182p target price for insurance group Legal and General, saying that the firm's first quarter showed strong asset management inflows.The stock is trading at just 7.7 times 2012 earnings, compared with the UK sector average multiple of 9.6."We think the shares are attractively valued for a stock that has above average return on equity (ROE) and growth prospects, in our view, and we remain buyers."A 'weak start to the year' for Africa-focused gold miner Randgold Resources has prompted Investec to place its hold recommendation and 7,015p target price under review.Randgold produced 165,000 ounces in the first three months of 2012, compared with Investec's 175,000-ounce forecast. The broker says that this equates a 660koz per annum run rate, well below the 2012 guidance of 825-865koz, a target that the firm reaffirmed in this morning's statement."RRS reports that it has seen little disruption as a consequence of the Mali coup and it expects Mali operations to continue to run at full production, following return of civilian rule. The discrepancy between our recommendation and target price has reflected this Mali uncertainty and this is now under review."Jefferies has reiterated its buy recommendation and 740p target price for medical devices group Smith and Nephew after a 'solid' first-quarter update this morning.Sales rose 3% on an underlying basis to $1,079m, bang in line with consensus estimates.Adjusted earnings per share (EPSA) came in at 19.5 cents, compared with consensus estimates of 18.5 cents, while trading profit of $252m was ahead of the $242m forecast. The trading profit margin of 23.3% also beat the 22.4% estimate.The broker thinks that the first-quarter results are indicative of Smith & Nephew being on target for "a modest increase versus 2011" in profitability.BC