Broker tips: Lloyds, CSR, Aveva

Nomura has reiterated its reduce recommendation and 35p target for Lloyds Banking Group ahead of the firm's full-year results due later this week.Nomura says that the outlook for both revenue and asset quality has deteriorated over the second half of the year, "which makes us more concerned about Lloyds given the balance sheet risks".The broker downgraded its rating for the bank from neutral to reduce last week saying that the shares are trading at the top end of their valuation range."Also, we still see consensus as too optimistic on pre-provision profits running into 2012. We remain cautious on the name going into the full-year results," Nomura added.FinnCap has reiterated its buy call on wireless technology and computer chip company CSR after the firm's fourth quarter results came in at the top end of guidance and above the broker's expectations.However, while the broker remains a buyer of the stock up to the 240p mark, it says that its recommendation may be "heading towards a hold" pending an analyst meeting. It seems like this may be likely given that the shares have jumped 19% this morning to trade at the 271p level by 10:08."With the [Zoran] merger savings and synergies on track to be delivered by Q2, the company continues to expect underlying operating costs of "$420 to $430m" and thus a $110m profit. This leads us to a current projected EV/EBITDA of just 3x after the recent run in the share price. This was our projected target price ahead of seeing the company deliver on the synergies through the year," Daniel said.UBS has downgraded its rating for Aveva on valuation grounds but has highlighted "many positives" for the FTSE 250 engineering information technology company.The broker has cut its recommendation from neutral to sell, saying that the stock's valuation looks high with the business's fundamentals "more than adequately discounted". Nevertheless that target price is lifted from 1,400p to 1,550p after UBS upped its 2013 estimates.As for the positives, UBS notes that Aveva enjoys the highest returns on capital in its coverage list and has an "inherently cash-generative business model". Furthermore, the broker thinks that a top-down view of end markets is attractive , "with customers in energy-related markets makingup 60% of revenues directly, and perhaps three-quarters or more including indirect sales". Meanwhile, emerging markets make up around 50% of sales.BC