MARKET TALK: Serco Update Shows Continued Strength - Investec

29th Jun 2010 09:48

0848 GMT [Dow Jones] Serco Group's (SRP.LN) trading update confirms the group continued to trade strongly in 1H and is on track not only to meet guidance for the FY, but also its longer-term guidance on margins for '12. Says: "We rate management highly and believe that Serco is very well placed to benefit from outsourcing contracts resulting from the deficit reduction program in the UK." Regards Serco as a high quality holding in the sector and reiterates buy rating on the stock. Has 695p price target. Shares -2.3% at 609p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 29, 2010 04:48 ET (08:48 GMT)