MARKET TALK: UBS Cuts Cobham Price Target

8th Jul 2010 09:07

0807 GMT [Dow Jones] UBS cuts Cobham (COB.LN) price target to 240p from 270p, to reflect current European defence peer group trading multiples. Says while investors are beginning to anticipate a strategic review that could lead to cost and cash savings and higher margins, recent experiences at Thales (HO.FR) and QinetiQ (QQ.LN) suggest defence budget fears are likely to dominate the share price and restrict a re-rating. Says the valuation is attractive in the longer-term, but positive catalysts are far from clear. Keeps the stock at neutral, ahead of 1H results on Aug. 5. Shares +1.3% at 227p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 08, 2010 04:07 ET (08:07 GMT)