Broker tips: Lloyds, Vodafone, Pace

LONDON (ShareCast) - Deutsche Bank (Xetra: 514000 - news) has named Lloyds as its "top pick" in the UK banking sector ahead of the first-quarter reporting season, saying that operating conditions across the sector have been good over the start of 2015. "Lloyds is our top pick, Barclays (LSE: BARC.L - news) offers material valuation upside, Standard Chartered (Other OTC: SCBFF - news) is a 'sell'. HSBC and RBS (LSE: RBS.L - news) are 'holds'." The next 12 months will be a "year of inflection" for Vodafone , according to Goldman Sachs (NYSE: GS-PB - news) which predicts a return to organic growth at the telecoms giant. The bank kept a 'buy' rating.

After seven years of profit declines, it expects Vodafone's European margins to finally stabilise in the year to March 2016 has forecast organic sales to rise around 2%.

A £1.4bn takeover offer from US group Arris for Pace (Other OTC: PCMXF - news) has prompted Numis Securities to remove its 'sell' rating on UK set-top box maker.

The broker lifted its stance to 'hold' and hiked its target price from 280p to 443p, saying it sees little chance of the deal falling through.