MARKET TALK: Investec Cuts Costain Target Price; Still Buy

29th Jun 2010 13:31

1231 GMT [Dow Jones] Investec keeps Costain Group (COST.LN) at buy, while cutting its target price to 490p from 510p. Notes drop in share price amid fears of public spending cuts, but "the lack of cuts to capital spending in the budget and the restated commitment to the GBP16Bln Crossrail project underpin our view that much work done by Costain and other infrastructure groups is more protected from public spending cuts than share prices indicate." Says the upcoming trading update and analyst site visit should highlight the strength of Costain's core markets of water, waste, rail and nuclear and in consultancy and maintenance. Shares -1% at 203p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 29, 2010 08:31 ET (12:31 GMT)