UK MARKET TALK ROUNDUP: BROKERS COMMENTS

7th Jul 2010 07:12

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] 0612 GMT [Dow Jones] UBS raises Homeserve (HSV.LN) price target to 2080p from 1900p. Says while 1H typically has a seasonally lower proportion of profits, there is significant underlying activity in the business. Notes new customer growth initiatives in the UK, the development of the Agbar partnership in Spain, the new presence in Italy, the closure/development of the National Grid acquisition, and the two new large affinity partnerships in the USA. Says strong relative performance during the market correction since mid-April has been underpinned by the positive international developments. However, given the recent strong share price performance, keeps at neutral. Shares closed Tuesday at 2076p. ([email protected]) 0602 GMT [Dow Jones] UBS downgrades Dana Petroleum (DNX.LN) to neutral from buy, but raises its price target to 1470p from 1300p following a bid approach from the South Korean national oil company, or KNOC. Says Dana's shares subsequently moved closer to a level reflecting a more full valuation. If the deal does not go through, UBS reckons Dana's share price could fall back to/below its prior target of 1300p. Does not expect a counterbid above the current indicated level. Adds it's basing its price target on a probability weighting, assuming a 50% chance the deal will take place. Shares closed Tuesday at 1453p. ([email protected]) 0559 GMT [Dow Jones] Charles Stanley initiates easyJet (EZJ.LN) at reduce with a 334p target. Says further expansion of the fleet will only create shareholder value if the new aircraft achieve a pretax profit per seat greater than ever achieved before. Says for this to succeed, a substantial number of factors must be achieved. These include the company to deliver its GBP190M cost reduction program as planned; for yields to rise and the recovery of asset utilization to '07 levels. Says the current share price implies success in getting margins up to a level never seen before and keeping them there. Therefore, the brokerage sees substantial downside risk. Shares closed Tuesday at 400p.([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 07, 2010 02:12 ET (06:12 GMT)