UK MARKET TALK ROUNDUP: BROKERS COMMENTS

2nd Aug 2010 07:48

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] 0648 GMT [Dow Jones] Senior's (SNR.LN) interim pretax profit is ahead of expectations says a trader. FY adjusted EPS is lifted by 4% to 10.7p notes the trader. The trader sees potential for further upgrades during the 2H and says the shares look attractive particularly as the outlook for civil aerospace continues to improve. Shares closed Friday at 127.5p.([email protected]) 0638 GMT [Dow Jones] Randgold Resources (RRS.LN) will likely open weaker Monday, after lowering its production guidance from its Loulo gold mine says a trader. Says Randgold is expecting Loulo's output for '10 to be within 5% and 10% of its original forecast of 400,000 ounces. Shares closed on Friday at 5730p. ([email protected]) 0620 GMT [Dow Jones] Citigroup raises British American Tobacco (BATS.LN) target to 2570p from 2460p after its 1H '10 adjusted EPS beats consensus by 3%. Says the company's 1H results are stronger than expected in all regions apart from Eastern Europe. Lifts '10 EPS forecast to 178.4p from 175.4p and '11 to 195.2p from 191.9p. Says the global slowdown has impacted cigarette volumes much more than the market expected but this has been made up for by very large price increases. Notes that British American is seeing signs of improving volumes, especially in Russia. Maintains buy rating. Shares closed Friday at 2194p. ([email protected]) 0615 GMT [Dow Jones] Citigroup nudges up British Airways (BAY.LN) price target to 295p from 280p, based on 100% profitability of its joint-venture with American Airlines going ahead and on updated combined BA/Iberia Lineas Aereas de Espana (IBLA.MC) valuation. Also, following stronger than expected 1Q results, raises '11E operating profit to GBP437M from GBP245M. Lifts '11 EPS forecast to 8.9p from a loss per share of 2.0p, and raises '12 EPS forecast to 27.3p from 22.1p. Keeps BA at buy. Shares closed on Friday at 219.6p. ([email protected]) 0600 GMT [Dow Jones] Citigroup upgrades Trinity Mirror (TNI.LN) to hold from sell, following the recent falls in the share price. Also increases its price target to 100p from 90p. Despite stabilizing revenues, Citi does not see a return to top-line momentum in the near future, and says uncertainties remain over sustainable margins. Says, "we see no value in aggressively selling the shares from here, but would equally not be buying either." Meanwhile, strong cost control in 1H drives EPS upgrades. Raises '10 EPS forecast to 26.9p from 21.1p, and '11 to 24.1p from 19.1p. Shares closed on Friday at 106.5p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires August 02, 2010 02:48 ET (06:48 GMT)