Broker tips: Moneysupermarket.com, ARM Holdings, European stocks

(ShareCast News) - Moneysupermarket.com got a boost on Wednesday after Citigroup upgraded the stock to 'buy' from 'neutral' and raised its price target to 370p from 300p, pointing to improved visibility."Whilst we acknowledge the strong run in the share price, we now however take a more positive view on the long-term opportunity and upgrade to buy."It said the company's first-half results were solid, with management suggesting full-year 2015 results will be modestly ahead of consensus expectations.The bank said that while this was very reassuring, it was more interested in further management disclosure regarding data on market dynamics."Total market by number of products has been previously revealed; however, this time growth rates for the market, as well as data regarding the online penetration and Moneysupermarket product volumes, were also discussed. This gave us increased comfort as to the businesses' long-term growth potential."Citi welcomed management's clarity on technology investment target returns. It also highlighted the fact that management flagged potential for acquisitions or special dividends, driving scope for earnings upside and increased shareholder returns. Bernstein upgraded ARM Holdings to 'market perform' from 'underperform' with an unchanged target price of 800p, noting that since its last peak at the end of March, the stock has significantly underperformed the wider market.Bernstein said the stock has dropped 25% since March as the chip maker reported a disappointing second quarter and negative news flow from the handset market intensified steadily.However, it said near-term expectations have come down, "making the risk reward of shorting the stock into the next set of numbers unattractive."In addition, Bernstein said it does not believe the smartphone market will deteriorate further in 2016."Our joint work with Bernstein's Semis and Hardware analysts suggests the smartphone correction will continue to be strong in the second half but things should normalise in 2016."In the coming quarter, it expects royalty numbers to slightly disappoint versus consensus, but not materially. Bernstein forecasts processor royalty revenues of $164.8m in the third quarter, which is 1.1% below consensus expectations of $166.6m.Still, it strongly recommended that any investors interested in owning the name be patient and wait for either a more attractive valuation or a real flush of negative news flow. The ongoing weakness in emerging markets and China won't significantly dent the European economy, Morgan Stanley said in its most recent equity strategy note.The bank said it expects equities to be higher in three months, adding that current volatility in markets is likely to be temporary rather than the start of a long and painful bear market."While markets may stay volatile in the short-term, we believe that MSCI Europe will be higher in three months' time and recommend investors ultimately use this opportunity to add exposure to European equities," it said.The bank took the opportunity to highlight 20 names it considers to be the best oversold opportunities in Europe.These were Akzo Nobel, ARM Holdings, BMW, BNP, Centrica, Credit Suisse, Diageo, Engie , IAG, Intesa Sanpaolo, KPN, LafargeHolcim, LVMH, Norsk Hydro, Philips, Prudential, Publicis, SAP, Telenor and TDC.On Akzo Nobel, it said free cash flow is recovering , the company has high gearing to a European recovery and the valuation is compelling.As far is ARM is concerned, it said that while the market is focused on a decline in smartphone unit growth, there are strong pricing tailwinds from the increased royalty rate driven by 64-bit adoption.Morgan Stanley said BMW has best-in-class returns on capital and cash flow conversion. It added that although China headwinds will continue, these are now being priced in.For BNP Paribas, it pointed to attractive gearing to the Eurozone recovery and noted that the valuation is at a 20% discount to the European sector.Morgan Stanley said it expects Centrica to deleverage while growing the dividend and increasing profits .In terms of Credit Suisse, MS said tighter allocation, particularly in the investment bank, crisper cost management and reinvestment can drive an increase of 1 to 2% in return on tangible equity.The bank said recent weakness in Diageo shares represent a buying opportunity, given improving momentum, particularly in the US and India.It said Prudential remains one of its top picks within the European universe. "We believe the group has positioned well to withstand the recent Asian turmoil and the growth story is still intact," it said.