Broker tips: Tesco, BSkyB, WPP

Despite cutting forecasts for Tesco after a disappointing Christmas, Nomura has maintained its buy rating on the supermarket giant."Tesco traded through Christmas with a lower level of promotions, and against an increased level of competitor promotions and coupons, thus losing traction across the peak period," according to Nomura.However, analysts remain optimistic: "Having underperformed UK grocery market LFLs in recent years, we believe the magnitude of investment underscores Tesco's determination to reassert its authority in its core market."Nomura maintains a 500p target price.Both UBS and Investec have downgraded pay-TV and internet service provider BSkyB citing an uncertain outlook as the reason for the ratings cut. UBS has cut its recommendation to neutral from buy and taken the stock off its 'Most Preferred List', saying that broadband growth could slow in the long term. The Swiss broker also notes the Premier League football rights tender in the second quarter as an overhang on the share price. The target price is slashed from 860p to 740p, "as we apply a discount to reflect these uncertainties", UBS said.Meanwhile, Investec has moved from a buy rating to a hold, saying that the next six months could be dominated by "uncertain sentiment and negative newsflow". Investec's target price is cut from 760p to 700p.Advertising giant WPP was performing well on Thursday, helped by an upgrade from UBS from neutral to buy.The broker also hiked its target price from 675p to 840p, suggesting a significant upside to the current price of 716.5p (at yesterday's close)."In our opinion, a near-term slowdown in Europe is already in consensus expectations, medium-term growth is secured through global exposure, and valuation and cash returns are supportive, leaving the stock with greater potential upside in a stronger market than professional publishers, but with less risk than broadcasters."BC