Broker tips: Rio Tinto, G4S, Britvic



LONDON (ShareCast) - Rio Tinto (Xetra: 855018 - news) may have swung to its first-ever annual loss in 2012, but Nomura has kept its 'buy' rating and 3,700p target price for the stock, calling its full-year results 'solid' with adjusted profits coming in ahead of forecasts.

The broker labelled Rio as an attractive and relatively low-risk exposure to the mining sector in a "volatile and unpredictable" macroeconomic environment.

Following a tough year for security solutions group G4S (LSE: GFS.L - news) , Investec (LSE: INVP.L - news) has raised its rating for the stock from 'hold' to 'buy', saying that the company is well-placed to recover in 2013.

"G4S has faced a series of setbacks in the UK, with the mishandled Olympics contract followed by a failure to secure recent high-profile prisons and police opportunities. However, we believe concerns over exclusion from government outsourcing are overdone, and that the group is poised to benefit from a greater flow of programmes into 2013."

Panmure Gordon has retained its 'hold' rating and 380p target price for soft drinks group Britvic (Other OTC: BTVCF - news) after Wednesday's announcement that the Office for Fair Trading (OFT) has referred the firm's proposed merger with AG Barr to the Competition Commission.

Panmure said: "This decision seems bewildering given the relatively small share each of these brands has of the £9bn GB soft drinks market and the fact that Coca Cola (NYSE: KO - news) and Private label combined account for c.50% of the GB Take Home market."