Broker snap: UBS cuts numbers for Close Brothers

14th Sep 2011 10:20

Shares in banking, securities and asset management firm Close Brothers were dragged lower on Wednesday after UBS scaled back its forecasts and reiterated its cautious outlook for the industry.The Swiss broker said that since Close Brothers' trading statement in July, it has seen a more challenging macro environment in the UK and notes that market levels have dropped. As such, earnings estimates for 2012 and 2013 have been reduced by 11% and 13%, respectively."We are cautious on the outlook for exchange traded volumes for equities, as volumes tend to be subdued after period of high volatility and reflect this caution in our numbers for Winterflood [market-maker company]."Due to the change to estimates, the broker cuts its target price from 780p to 700p. A neutral recommendation is kept.By 10:09, shares were trading 2.47% lower at 671p.BC