Broker tips: Shell, BATS, Elementis

Credit Suisse has highlighted the better-than-expected figures from oil titan Royal Dutch Shell in the first quarter but has maintained its neutral rating and 2,530p target price on the stock, saying that shares are 'not especially cheap in our view'.The broker says that the stock is trading at seven times 2013 earnings, a 10% premium to sector majors (6.5x), whilst offering below-sector-average yields."We continue to see better fundamental value elsewhere in the sector (eg at Eni), however we would expect to see some rotation back into Shell given the year-to-date underperformance and the quality of its assets in the current uncertain market environment."Jefferies has reiterated its buy recommendation for cigarettes and tobacco giant British American Tobacco (BATS) following the group's 'encouraging' start to 2012.Of the four major international tobacco players, the broker says that BATS has the most favourable emerging market footprint, with two-thirds of its boluses coming from the developing world. Meanwhile, some 41% of its volumes come from markets where it holds the number-one position.The broker said that risks to its target price of 3,600p include: a sudden sharp rise in excise duties; increased plain packaging regulation; a major acquisition; consumer weakness in key markets; and a stronger sterling.UBS has raised its target price for FTSE 250 chemicals group Elementis after yesterday's strong first-quarter update revealed a 'solid start to the year'.The broker has raised its 2012 and 2013 full-year earnings per share (EPS) forecasts by 5% to 23.5 cents and by 7.5% to 24.6 cents, respectively.UBS maintains its buy recommendation for the stock, noting that shares are trading at 13 times 2012 earnings, versus the UK chemical peer group multiple of 14.3. The target price is lifted from 200p to 220p.BC British American Tobacco Elementis