UK MARKET TALK ROUNDUP: BROKERS COMMENTS

16th Jun 2010 07:31

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] 0631 GMT [Dow Jones] HSBC downgrades Home Retail Group (HOME.LN) to underweight from neutral, and cuts its target price to 226p from 285p following the company's 1Q update. Says trading at Argos was worse than expected. Expects increased price pressure in key categories to weigh on sales and potentially gross margins at Argos. Also notes longer-term structural concerns. Shares closed Tuesday at 231p. ([email protected]) 0630 GMT [Dow Jones] Deutsche Bank initiates Shire (SHP.LN) at buy, with 1650p price target. "Having navigated the loss of exclusivity on its best-selling drug, Adderall XR, Shire can look forward to a period of strong revenue and earnings growth, based on a rebound in its ADHD franchise and on rapid growth from its biologics-based human genetic therapies business," says Deutsche Bank. Says the company's attractive growth and cash flow outlook should command a premium rating. Shares closed Tuesday at 1427p. ([email protected]) 0623 GMT [Dow Jones] J Sainsbury's (SBRY.LN) 1Q update is slightly disappointing, says an analyst. The analyst notes that on a VAT-inclusive basis, the 1.1% like-for-like sales excluding petrol, is exactly the same as that which Tesco (TSCO.LN) achieved, despite the extra two weeks of trading Sainsbury enjoyed, pre World Cup. Still, the analyst says the new space growth is pleasing. Shares closed Tuesday at 324p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 16, 2010 02:31 ET (06:31 GMT)