Broker tips: N Brown, ITV, Tullow Oil, Soco International

(ShareCast News) - Investec on Wednesday retained its 'hold' rating on N Brown after the fashion and home shopping retailer reported a decline in half-year profits.The FTSE 250 group, whose shopping brands include plus-size focused Simply Be and Jacamo, lifted revenues 4.2% to £415.8m but saw operating profits sag 14.2% to £38.8m and statutory pre-tax profits plummet 54.6% to £19.4m, although this had been flagged. Underlying earnings per share were down 14.5% to 9.9p.However, chief executive Angela Spindler's transformation delivered tangible results, including online penetration up 5 percentage points to 63% and a strong performance from Simply Be and Jacamo, with product revenue for both up 21%.Although the business re-organisation towards an online focus means the "ongoing underlying profitability of the business is not yet clear", according to Investec analyst Kate Calvert. Certain exceptional costs largely relating to the closure of 18 clearance stores put a big dent in profits."While we like N Brown's structural growth niche and believe moving to a digitally led, retail model is the right strategy, the modernisation programme disruption means the ongoing underlying profitability of the business is not yet clear," Calvert said. ITV is an attractive asset for investors and stands to gain from the "robust" macroeconomic environment, but advertising sales will take a short-term hit after England's elimination from the Rugby World Cup, one of the world's most influential brokers said on Wednesday.Goldman Sachs said the company's advertising revenues would now expand by 4% in the fourth quarter, down from the 6% rise its analysts had pencilled in previously.For the full-year that ad sales were expected to see an increase of 5.6%, in line with the analyst consensus as compiled by the company itself.As well, the de-rating in US media was likely to cap multiples for ITV, Goldman said.As a result, the broker lowered its target price on the stock to 290p from 309p.Nevertheless, the firm still has attractive content ownership. Hence, it makes sense for Liberty Media to own a larger blocking stake, for example, the broker added.Goldman Sachs removed the shares from its Pan-Europe Conviction Buy List but reiterated its 'buy' recommendation. Shares in Tullow Oil and Soco International were under pressure after Macquarie downgraded both stocks to 'neutral' from 'outperform' on valuation grounds, as it took a look at the European exploration and production sector.Macquarie pointed out that crude oil price rose by $10 in the six weeks to 12 October."Most share prices have shown a stronger response than our sensitivity models predicted, however, and some have now overshot their fundamental values in our opinion," it said.The bank noted that Tullow shares have risen 43% since late September on both oil prices and the alleviation of near-term balance sheet concerns, and are now trading close to fair value.As far as Soco is concerned, it said reaction to the oil price rise has been even stronger, despite there having been no operational catalysts.Macquarie added that Soco now trades close to its 186p price target.The bank said its analysis shows that the average oil price being discounted across the sector is a flat $72, which means investors need a relatively bullish view on oil to be 'overweight' in the E&P sector overall.