UK MARKET TALK ROUNDUP: BROKERS COMMENTS -3-

22nd Jun 2010 08:02

0648 GMT [Dow Jones] Whitbread's (WTB.LN) interim management statement is very strong with group like-for-like sales up 7.6% in the 13 weeks to June 3, says an analyst. The statement is 'exceptional' and risks lie to the upside. The analyst says management is going to remain vigilant on cost control and is planing to be broadly cash flow neutral this year. The analyst thinks it may be too early for changes to consensus forecasts and certainly does not expect any changes ahead of the UK budget, expected at 1130 GMT. However, the statement is extremely good, the analyst says. Seperately, a trader notes that the stock is trading at a discount to hotel peers. Shares closed Monday at 1478p. ([email protected]) 0630 GMT [Dow Jones] Bunzl's (BNZL) trading statement is in line with expectations, says an analyst. Notes in particularly the company's success in winning business in the US is good news. Also sees better margins in the UK and Ireland, although revenue in the first half is below the same period last year in these regions due to economic conditions. Says the company is flagging up further acquisitions being finalized during the remainder of the year, which is always good news for Bunzl. Shares closed on Monday at 746.5p. ([email protected]) 0602 GMT [Dow Jones] JPMorgan Cazenove downgrades EasyJet (EZJ.LN) and Ryanair (RYA.DB) to neutral from overweight as it takes a look at the airline sector. EasyJet's share price performance is being overshadowed by Stelios's disagreements with the board over strategy, says GS. Until these issues are resolved permanently, the share performance is likely to remain muted. Where Ryanair is concerned, the brokerage says it remains one of its favorite picks for the medium term. However, in the short term, relative share price performance risks are being eclipsed by a recovery in the flag carriers. EasyJet shares closed Monday at 426p, Ryanair at EUR3.67.([email protected]) 0601 GMT [Dow Jones] Goldman Sachs downgrades BG Group (BG.LN) to neutral from buy, and cuts its target price to 1355p from 1400p as it takes a look at the E&P sector. Says after recent relative strong price performance, BG offers only 21% upside to its target price, in line with sector average. Goldman also notes the group's key new development areas are facing the risk of delays - "Australia from the Henry tax, Brazil from new, stricter deepwater regulation, and Kazakhstan by disagreements with the government." Shares closed Monday at 1125p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 22, 2010 03:02 ET (07:02 GMT)