Broker tips: Pearson, WPP, APR

Investec has maintained its 'hold' rating and 1,240p target price for publishing group Pearson, saying that the possible merger between Penguin and Random House is 'not a game changer'.Investec analyst Steve Liechti notes that this follows speculation in the summer but nothing since has followed. He said: "We view this as a possible net positive but not a game changer - while we see some EPS upside via near-term merger/cost synergies in a pressured top line business, this does not imply cash returns to shareholders or re-investment in long-term growth Education assets."Nomura has reduced its target price for advertising and media giant WPP from 1,030p to 980p after cutting its forecasts for organic growth on the back of a slowing macro-economic environment.In a research report published late on Thursday, the broker said it has slashed its organic growth estimate for 2013 from 2.5% to just 1%, "demonstrating further that momentum has changed for the company and the sub-sector".UBS has cut its target price for temporary power specialist APR Energy from 600p to 530p and retained its 'sell' rating on the stock after third-quarter revenues were a 'significant disappointment'.The broker estimates that utilisation in the third quarter of 60% was 20 percentage points below industry norms."Combined with continued disappointing order intake, we continue to believe there is insufficient capital discipline in the business, with fleet growth prioritised over fleet utilisation."