LONDON (ShareCast) - Rio Tinto easily beat consensus estimates with its first-half results on Thursday, though Investec repeated its 'hold' recommendation for the stock on a valuation basis. It said that the stock appears "fully valued" on a price-to-earnings basis.

Nevertheless, the broker said that shareholders could still see "increased returns" from 2015 after the miner's recent strong performance.

Numis Securities has upped its rating for Hargreaves Lansdown (HL) from 'hold' to 'buy', playing down recent concerns about the impact on the financial services group from the Retail Distribution Review

The broker said that its upgrade follows a period of share-price weakness, with the stock having fallen by nearly a quarter since the start of 2014.

Henderson Group's first-half profits came in ahead of Canaccord Genuity's estimates but failed to meet up to the market's expectations.

The broker kept a 'hold' rating for the investment company on Thursday, highlighting the still-yet-to-be-seen turnaround in the institutional business.

Investec issued a 'buy' recommendation on Dixons Carphone, saying the newly merged company should benefit from strong buying synergies and is well-positioned to capitalise on structural changes in mobile.

After Carphone Warehouse and Dixons Retail completed their merger, Investec analyst Alistair Davies took a fresh look at the potential benefits of the deal, spying superior earnings growth potential and an undemanding valuation.

BC

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