MARKET TALK: UBS Upgrades European Tech Hardware, Software

16th Jun 2010 09:53

0853 GMT [Dow Jones] UBS upgrades the European ex-UK tech hardware sector to overweight from underweight, given attractive valuations. Says relative earnings momentum is already at a record low, and "it is hard to see it getting much worse." Also upgrades software to overweight from neutral, as a play on increased corporate spend to "soft capex", or spending on advertising, technology, software and services. Enables these upgrades by reducing the overweight in pharma to a modest overweight. While valuations are attractive here and even earnings momentum is now improving, tactically the sector may underperform if the market was to rally from here, says UBS.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 16, 2010 04:53 ET (08:53 GMT)