Broker tips: Petrofac, Glaxo, ENRC

Petrofac may have announced that it is on track to hit its full-year guidance but Investec has maintained its 'hold' rating and 1,500p target price on the stock, saying that it is 'still worrying about the future'."Although 1H12 contract wins have just kept the order book on track (only a 4% decline since December after recent awards), delays in some contract awards to refill the core E&C [Engineering & Construction] backlog will not now occur until 2013, making it more difficult to maintain revenue and profits in this key division and underpin growth forecasts for that year."With GlaxoSmithKline's margin expansion put on hold, Jefferies has downgraded its recommendation for the stock from 'buy' to 'hold'."Whilst we still see double digit CORE EPS growth for GlaxoSmithKline from 2013E-17E, visibility on margin expansion has been obscured by over-exposure to price pressure and transfer pricing in Europe," the broker said.The target price is reduced from 1,600p to 1,550p.UBS says to expect a weak first half from mining group Eurasian Natural Resources Corp (ENRC), predicting earnings to tumble and debt to surge.ENRC, which will report its results on August 15th, will report a 40% half-on-half fall in clean earnings per share (EPS) to 38 cents, UBS says. Meanwhile, net debt is forecasted to rise from $1bn to $3.5bn over the half due to M&A and capital expenditure.The broker has cut its target price for ENRC from 615p to 585p, based on a calculation of 0.8 times net present value (reflecting political risk), using a 10% discount rate. However its 'buy' rating is maintained.BC Glaxosmithkline