Broker tips: Mining stocks, Lloyds, Rolls-Royce, Asos

JPMorgan Cazenove has reduced target prices across the UK mining sector after lowering its commodity forecasts, predicting further demand weakness, especially from China, in the second quarter.The broker has lowered its 2015/2016 forecasts for copper prices by 3%/6%, aluminium by 5%/9%, zinc by 4%/6% and nickel by 14%/15%. The result is a reduction in earnings estimates for a number of blue-chip mining companies, including Rio Tinto, BHP Billiton, Glencore Antofagasta and Anglo American.Shares in Lloyds Banking Group were given a lift on Wednesday by analysts at Jefferies who said they see a better reward/risk balance at the lender, upgrading the stock from 'underperform' to 'hold'."A progressively rising dividend (4.2p in 2017 from 0.75p in 2014) should provide support for LLOY's premium price-to-tangible book value (P/TBV) valuation, despite a persistently material gap between so-called 'underlying' and statutory earnings and lack of earnings upgrades," Jefferies said. "Reward/risk is no longer asymmetric to the downside and we move to 'hold' as a result."Aerospace and defence engineer Rolls-Royce has been cut to 'underperform' from 'market perform' at Bernstein who cited "emerging challenges" in two of the company's divisions."We believe the emerging challenges in 'Civil Aerospace' and Land & Sea (divisions) will not support the current valuation. The recent strength in share price performance does not reflect improving fundamentals of key areas of risk in the company, in our view," said Bernstein.Asos is building momentum and making "significant progress", according to Numis Securities, after first-half results came in ahead of expectations.The broker, which reiterated a 'buy' rating and 4,000p target price for the stock, said the online fashion retailer is "back on the front foot" with scope for upside given the positive reaction to price investments and benefits from warehousing progress.