Broker tips: RSA, Glencore, HSBC

(ShareCast News) - Deutsche Bank cut its price target on RSA Insurance back to a "fundamental" 430p from 540p on news that Zurich Insurance has ended offer talks with the London-listed insurer.The broker said it's unlikely that any of the European composites will emerge as rival bidders and certainly not at 550p, while the bank's US analysts don't believe that there is interest from US insurers."In our view, therefore, that leaves only the Japanese or Chinese insurers, who could be interested in building their global scale, but who wouldn't derive any synergies." DB rates the stock at 'hold'.Until final demand from China and emerging market currencies find a bottom it will continue to be hard to set a floor for commodity prices, one of the world's largest brokers believed.Iron ore was set to do worst from current levels while copper prices were seen "hovering" around the top-end of the cost curve (220 US cents) until a deficit reappeared in the market, towards 2018, Credit Suisse said.Other base metals would not fare much better either, with the Swiss broker only anticipating a shallow recovery.As regards the main stocks in the sector, Glencore shares offered the potential for a 25% re-rating given the large valuation that has opened up following recent sharp falls in the stock price, the team of analysts led by Liam Fitzpatrick said in a research note e-mailed to clients.Nonetheless, Glencore had "suffered a complete loss of confidence from investors following the recent dividend cut and equity placing," the analysts added.HSBC is a bit of an underachiever when it comes to managing the 'micro' but stands to gain from a big macroeconomic tailwind as US interest rates rise, Goldman Sachs said.For that reason, the US broker believed the risk-reward profile for the lender's Hong Kong-listed shares was "favourable".So while its earnings per share estimates for HSBC came down - to reflect negatives such as lower currency rates in emerging markets and higher EM credit costs - Goldman emphasised the positive impact a rising Fed funds rate would have.Yet the key attraction is HSBC's strong capital position, Goldman said in a research note e-mailed to clients. -The broker reiterated its 'buy' recommendation on the Asia-listed shares (0005.HK) and added them to its Conviction List. The London-listed shares were kept at neutral and the target price trimmed 3% to 670p.The main risks for the investment case were,"underachievement on strategic plan, delayed US$ rate hike, higher minimum capital adequacy ratios," Goldman Sachs added.