MARKET TALK: Collins Stewart Downgrades Petrofac To Hold

25th Jun 2010 10:10

0910 GMT [Dow Jones] Collins Stewart downgrades Petrofac (PFC.LN) to hold from buy after recent outperformance in the past month. Notes the company's latest interim management statement points to good backlog growth in 2H '10 but thinks this was already expected by the market. As a result of the recent strength, says valuations are looking increasingly unattractive. Also, remain cautious on Petrofac's ability to maintain net post-tax margins of over 10% in its core engineering and construction division in the medium term. Maintains 1250p price target. Shares +0.2% at 1226p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 25, 2010 05:10 ET (09:10 GMT)