Sector movers: European car sales disappoint

18th Sep 2012 12:52

The Automobiles & Parts sector was the worst performer of the morning session after the release of disappointing European car sales data.European car registrations fell 8.5% to 722,483 vehicles in August, from 789,458 a year earlier. In the year to date sales have decreased by 6.6% to 8.59m cars, the Brussels-based European Automobile Manufacturers' Association said. Imperial Tobacco and British American Tobacco (IMPs & BATs) are doing well after Nomura lifted its price targets on both this morning. IMPs' price target was hiked to 2230p from 2,197p, while BATs had its 12-month price target raised to 3500p from 3,390p. Nomura is neutral on the former and rates the latter as worth buying.Other brokers have also being weighing in on the two major players of the tobacco sector.Oriel Securities reiterated its "buy" recommendation for IMPs, while leaving its price target of 2750p unchanged. Credit Suisse's price target for IMPs is not so far off Oriel's at 2700p. The Swiss bank has an "outperform" rating on IMPs.Morgan Stanley's recommendation is to be "overweight" in IMPs; it has a 2680 price target.As for BATs, Credit Suisse has reiterated its "outperform" rating and 3400p price target. Top performing sectors so far todayMobile Telecommunications 4,106.60 +1.45%Tobacco 36,094.69 +1.33%Food Producers & Processors 5,986.31 +0.74%Beverages 12,466.03 +0.61%Pharmaceuticals & Biotechnology 9,790.23 +0.50%Bottom performing sectors so far todayAutomobiles & Parts 5,337.80 -3.63%Industrial Metals & Mining 2,982.11 -2.21%Life Insurance 4,719.10 -2.16%Banks 3,946.53 -1.93%Oil & Gas Producers 8,222.39 -1.50%JH