MARKET TALK: Execution Starts Nine UK Support Services Stocks

12th Jul 2010 10:39

0939 GMT [Dow Jones] Execution Noble initiates coverage on nine UK support services stocks. Starts Babcock International (BAB.LN), eaga (EAGA.LN), Mears Group (MER.LN), Serco Group (SRP.LN) and WSP (WSH.LN) at buy. Starts WS Atkins (ATK.LN) and Connaught (CNT.LN) at hold. Begins Capita Group (CPI.LN) and Mouchel Group (MCHL.LN) at sell. Thinks austerity measures in the UK will prompt a move into outsourcing, to the benefit of the support services sector. However, increased competition and tougher contractual terms will limit margin gains. Highlights Babcock, -0.6% at 616p, as its top pick. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 12, 2010 05:39 ET (09:39 GMT)