UK MARKET TALK ROUNDUP: BROKERS COMMENTS

29th Jun 2010 07:34

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] 0634 GMT [Dow Jones] Serco Group's (SRP.LN) pre-close trading update is positive, according to an analyst, confirming a good first-half and that the company is on track to deliver guidance for this year. The outlook statement looks confident too, and the analyst also notes the substantial order book, new contract wins along side the scale and scope of existing contracts. Thinks outsourcing opportunities in the public sector as a result of the UK government's deficit reduction strategy will also be a positive. Shares closed Monday at 624p.([email protected]) 0633 GMT [Dow Jones] UBS upgrades Logica (LOG.LN) to buy from neutral on valuation grounds. Notes the stock has underperformed peers as concerns regarding its public sector exposure have plagued the stock since the UK general election. Thinks Logica has a fairly "typical" group exposure to the public sector, of 33%. Also thinks its UK government exposure is in line with peers, at 62% of UK sales and 13% of group sales. Adds risks undoubtedly exist, but these are more likely to hit in '11. Maintains 133p price target. Shares closed on Monday at 109p. ([email protected]) 0601 GMT [Dow Jones] ING upgrades Reckitt Benckiser (RB.LN) to buy from hold, and raises its price target to 3700p from 3400p. Thinks the recent contraction in the price to earnings ratio offers an excellent long-term entry point. Thinks at a '11 PER of 15x, Reckitt is more than discounting potential negative news flow and is attractively priced. This negative news flow includes raw material pressure, competitive pressures in Europe and risks related to Suboxone. Shares closed on Monday at 3122p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 29, 2010 02:34 ET (06:34 GMT)