Broker tips: Tesco, IMI, WS Atkins

The strategic problems at Tesco are getting worse, according to Investec, which still recommends to sell shares in the supermarket giant.Investec said that Tesco's strategy needs a "major overhaul". The broker has kept its 295p target price on the shares, saying that the risk remains on the downside.Jefferies has reiterated its 'hold' rating and 930p target price for engineering group IMI, saying that while it is a good business, there's still work to be done to satisfy 'near-term concerns'.The broker explained: "Management are targeting 75% of sales in their sweetspot (currently 55%) by 2017, and £20m of incremental year-on-year investment maybe required over that period."Whether or not the group will be spending £100m on this investment by 2017 clearly depends on the progress they are making with the top line. We believe they will have to manage this carefully in the near-term, especially given the possibility of markets remaining challenging in the near-term."Shares in engineering and design consultancy WS Atkins were hit on Friday on concerns about the company's involvement in the high-profile West Coast franchising fiasco."Rail has accounted for c10% of group revenue and headcount in recent years. It has been involved in a number of high-profile schemes so we do not believe that this particular project will have a significant negative financial impact," Brown said."The bigger hit is likely to be on share price sentiment. This follows the uncertainty created by Peter Brown and the cautious Q1 update."BC Tesco IMI