MARKET TALK: HSBC Starts European Business Services Stocks

8th Jul 2010 07:58

0658 GMT [Dow Jones] HSBC initiates coverage of European business services stocks. Says there has been some considerable volatility in the sector as investors wrestle with recession, the speed of the recovery and the possibility of a relapse in demand. "Through the clamour of much macroeconomic noise, the market has perhaps started to anticipate a mechanical slowing of growth after the early thrills of recovery." Starts Northgate (NTG.LN), Regus (RGU.LN) and Aggreko (AGK.LN) at overweight, with 260p, 110p and 1600p price targets, respectively. Also starts Experian (EXPN.LN), Mears (MER.LN) at overweight with 750p and 310p price targets. Starts Xchanging (XCH.LN), Capita Group (CPI.LN) and Davis Service Group (DVSG.LN) at neutral, with 210p, 800p and 390p price targets, respectively. Also starts Group 4 Securicor (GFS.LN) and Mitie Group (MTO.LN) at neutral, with 295p and 220p price targets. Initiates coverage of Ashtead Group (AHT.LN) at underweight with 75p price target. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 08, 2010 02:58 ET (06:58 GMT)