UK MARKET TALK ROUNDUP: BROKERS COMMENTS

22nd Jul 2010 07:49

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0649 GMT [Dow Jones] Tate & Lyle PLC's (TATE.LN) interim trading statement "is pretty neutral," says Investec Securities analyst Martin Deboo. Says: "I wouldn't have thought it provided much fuel for upgrades. Given the run the stock has had, I feel it's a pretty neutral statement. All the reported trends and events are in line with what we would have expected." Tate & Lyle said it expects continued steady demand for its speciality food ingredients. Deboo says the company's shift towards speciality ingredients and disposal of sugar operations is "generally correct, but it all comes down to the execution of the strategy." Keeps buy rating and 550p target price. Shares closed Wednesday at 468p. ([email protected]) 0644 GMT [Dow Jones] Capita Group's (CPI.LN) half-year results are in line with expectations and pretax profit a shade ahead of consensus forecasts says an analyst. In particular the company's bid pipeline is up at GBP4.4B, versus GBP3.7B in February '10, which will be well received by the market, Thursday, says the analyst. The company says pressure on pubic spending may affect growth in the short term in a small number of areas, but at the same time, the need for its public sector clients to achieve substantial cost efficiencies offers several opportunities for the group. Shares closed Wednesday at 710p. ([email protected]) 0642 GMT [Dow Jones] Goldman Sachs downgrades Dana Petroleum (DNX.LN) to neutral from buy and cuts its target price to 1894p from 2016p. Cites the stock's recent strong performance, seeing more upside elsewhere in the sector. It also cites greater than expected exploration failure, delays or cost overruns in development and weak commodity prices. Shares closed Wednesday at 1476p. ([email protected]) 0630 GMT [Dow Jones] Kingfisher's (KGF.LN) 2Q pre-close trading statement is mixed, says an analyst. Says UK disappoints, with B&Q like-for-like total sales -4.3%. However, thinks France looks slightly better, with LFL sales +3.1%, supported by new products, updated stores and good weather. Notes the positive comments on gross margin, particularly in the UK, where gross margin percentage is up strongly compared to 1Q '10/'11 and compared to the full year before. Shares closed Wednesday at 223p. ([email protected]) 0626 GMT [Dow Jones] Kingfisher's (KGF.LN) second-quarter sales are a little shy of expectations, but the group has made progress on margins, UBS analysts say. Say the group's comments suggest it is planning for cautious market in the face of uncertain macroeconomic conditions. Say the share could go down in line with overall market sentiment. Shares closed Wednesday at 223p. ([email protected]) 0619 GMT [Dow Jones] Nomura upgrades Inchcape (INCH.LN) to neutral from reduce, and lifts its price target to 330p from 320p. Also lifts its FY pretax profit forecast by 7% ahead of 1H results on July 29. Says this is primarily driven by sales and margin improvements expected in Australia, Hong Kong and the UK, offsetting weakness in Singapore and Greece. Sees the potential reinstatement of the dividend as a positive for the stock and a sign of confidence for future cash generation. Shares closed at 310p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 22, 2010 02:49 ET (06:49 GMT)