MARKET TALK: Costain Offers Significant Upside - Arbuthnot

21st Jun 2010 15:19

1419 GMT [Dow Jones] Costain's (COST.LN) ability to ride out the likely public sector spending cuts is being underestimated by the market, says Arbuthnot, maintaining its strong buy recommendation. Estimates that even if there was a 50% cut in government-related construction spend, it would impact 2011 revenues by less than 10% (earnings by 15%). Says the recent share price reaction provides an attractive buying opportunity, with significant upside to its 400p share price target. Shares +1.2% at 302p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 21, 2010 10:19 ET (14:19 GMT)