Broker tips: Melrose, Tesco, Dixons, Ted Baker

Investec has maintained its 'buy' rating for industrial conglomerate Melrose after the better-than-expected sale price from the disposal of motor manufacturing division Marelli Motori."Melrose's model (and record) also includes holding the appropriate level of capital for its current requirements, with fundraising for acquisitions and returns of cash out of disposal proceeds. Today's news adds to our confidence that shareholders can expect a cash return of c.50p, probably after the sale of Crosby and possibly by the end of 2013."Tradenext recommends investors to pick up shares of retailers Tesco and Dixons for their defensive properties in the midst of the market sell-off on Thursday."With the FTSE 100 nursing a triple-digit fall, it is days like this that solid, defensive companies like Tesco should be picked up," the broker said. Meanwhile, it hailed the forecast-beating results of Dixons, saying that the company has been "transformed from survivor to winner over the last couple of years and is going from strength to strength".Panmure Gordon has raised its target price for Ted Baker from 1,411p to 1,571p after the British fashion group's better-than-expected first quarter, but has kept its 'hold' rating on the stock.As for the valuation - trading at 21.9 times prospective earnings - the broker thinks that the stock "looks fully valued relative to UK peers Next and SuperGroup, for example, both rated 'buy'". Tesco Melrose