UK MARKET TALK ROUNDUP: BROKERS COMMENTS

8th Jul 2010 07:36

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] 0636 GMT [Dow Jones] Man Group's (EMG.LN) first-quarter trading update is "in line with expectations," with some positive signs that include lowest level of redemptions in three years from institutional investors, says Oriel Securities analyst Keith Baird. Adds the positive performance of AHL fund against backdrop of falling markets is also a good sign, although the result is still modest. Keeps at hold, with 300p target price. Shares closed Wednesday at 217p. ([email protected]) 0632 GMT [Dow Jones] AB Foods (ABF.LN) posts "another good strong update, following the trend of the last nine months," says Shore Capital's Darren Shirley. He's encouraged by Primark, where same-store sales are likely in high single digits, and notes that margins in the division have grown. Adds both sugar and grocery had robust performances, with more margin progress to come in grocery division. Reiterates buy stance. Shares closed Wednesday at 980p. ([email protected]) 0625 GMT [Dow Jones] Morgan Stanley upgrades WPP Group (WPP.LN) and UBM (UBM.LN), both to equalweight from underweight. Has a price target of 635p for WPP, and 510p for UBM. Says caution over the economic outlook in Europe means investors are favouring ad agencies with their considerable US and South East Asian exposure. As far as UBM is concerned, the brokerage notes the recent fall in the shares, evidence of solid 2011 exhibition rebookings and the reversion to a 5% yield. WPP closed at 629.5p, and UBM at 502p. ([email protected]) 0619 GMT [Dow Jones] Associated British Foods' (ABF.LN) 3Q update is better than expected, says a trader. Notes total group sales are up 14%, versus his expectations for a rise of around 6%. Adds the strong performance in Spain is particularly encouraging. Another trader expects the shares to open up around 2% on the update, after closing Wednesday at 980p. ([email protected]) 0616 GMT [Dow Jones] Morgan Stanley initiates AMEC (AMEC.LN) at equalweight with 1000p target. Says the company's below-average organic growth outlook and uncertainty on cash reinvestment are offset by its solid operational track-record and valuation. However, notes most of Amec's revenues come from mature areas such as the UK and the US, meaning exposure to energy 'hotspots' such as the Middle East, Brazil and West Africa is limited. "But its operations are low risk compared to other oil service companies." Shares closed Wednesday at 847p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 08, 2010 02:36 ET (06:36 GMT)