Broker tips: RBS, GlaxoSmithKline, Bookmakers

Investec has raised its rating for UK banking group Royal Bank of Scotland from 'sell' to 'hold' following the recent slump in its share price, but continues to recommend investors to avoid the stock.With the stock now trading at just 0.8 times tangible net asset value (tNAV), compared with a then-premium multiple of 1.0 in February, the broker has upgraded its rating. "However, why own RBS when profitable, defensive and dividend-rich Barclays ('buy') trades on 0.8 times [tNAV] too?" Panmure Gordon has retained a 'hold' recommendation on shares of GlaxoSmithKline after the pharmaceuticals group reported "another disappointment" for its therapeutic cancer vaccine, MAGE-A3."MAGE-A3 is a therapeutic cancer vaccine, the holy grail of the industry, but was identified as very high risk because it is an unproven area. Therefore, we believe consensus forecasts for this product are heavily risk adjusted and do not expect today's news to trigger major downgrades. Rather we view today's events as a missed upgrading opportunity."Changes to gaming machine taxes and horse racing betting levies announced in the Budget have prompted Credit Suisse to cut its forecasts and target prices for London-listed bookies Ladbrokes, William Hill and Paddy Power.The bank said that Ladbrokes, rated 'underperform', has the highest exposure to UK retail and will be most affected by these changes. It reduced its earnings estimates by 14% and 17% in 2015 and 2016, respectively, leading to a cut in the target price from 155p to 130p.BC