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Broker Round-up, including 'Not for the faint hearted, but Burberry’s Risk/Reward is attractive'

Last updated: 13:05 05 Oct 2012 BST, First published: 12:05 05 Oct 2012 BST

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While Morgan Stanley claims investing in Burberry (LON:BRBY) is not for the faint-hearted, the broker reckons it is worth browsing the upmarket fashion house for its attractive risk/reward.

Analyst Louise Singlehurst upgraded Burberry to ‘overweight’ from ‘equal-weight’ despite minor growth concerns in the near future.

“Whilst we see weakness in like-for-like momentum near term, we think investors should focus on the long-term investment proposition, which remains unchanged, in our view,” she said.

“We do expect retail investment to mute margin progression, but this is a brand with strong momentum and is well placed to take share, in our view.”

Investors should take a look at Experian (LON:EXPN), according to Credit Suisse.

The broker reckons organic growth at the information services group will prove more sustainable than it had previously thought.

It upped the company to an ‘outperform’ rating from ‘neutral’, with a higher target price of 1,200 pence from 990 pence.

Analyst Andrew Grobler added that the FTSE 100 firm will generate value through acquisitions, which he has considered in its target price.

Investec is a fan of Standard Chartered (LON:STAN) as the bank continues to release wave after wave of positive performance data.

Analyst Ian Gordon believes if it can keep this coming, Standard’s share price will rise accordingly.

He has a ‘buy’ rating and 1,800 pence on the stock.

Although it is reducing its forecasts and target price (to 977 pence from 1,000 pence) for Betfair (LON:BET), broker Panmure Gordon still believes it is worth a punt.

With higher gaming taxes, analyst Simon French now expects the online gambling site’s full-year earnings to come in flat at £90 mln, down from previous estimates of £100 mln.

However, he sticks to his ‘buy’ stance given the “unique business model, strong balance sheet and growth opportunities”.

Peel Hunt is urging investors to take a bite out of pub and restaurant owner Mitchells & Butlers (LON:MAB).

“The appointment of a new CEO, changing culture within the business and boardroom stability justify a re-rating of the shares,” said its analyst Nick Batram, who upgraded the stock to ‘buy’ from ‘hold’ today.

Despite a tough retail environment and the cultural revolution underway that will take time to come into effect, the analyst believes it is on the right track.

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