UK MARKET TALK ROUNDUP: BROKERS COMMENTS

21st Jun 2010 07:46

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] 0646 GMT [Dow Jones] HSBC upgrades ASOS (ASC.LN) to overweight from neutral. Says the company announces a small pretax profit beat in its final results and current trading is significantly ahead of market expectations. Says in current trading, group retail sales for the nine weeks to June 6 are up by 58%. Pushes up the price target to 1000p from 660p. Shares closed Friday at 761p. ([email protected]) 0635 GMT [Dow Jones] Investec downgrades Arm Holdings (ARM.LN) to hold from buy. Thinks the share price now reflects much of the medium-term upside. Still thinks company specifics will remain positive, but is concerned that the industry outlook may be reaching a short-term peak. Says forecasts are now incorporating best-case scenarios for consumer spending and the rush towards smartphones. Says "this may well materialize but is unlikely...to be substantially exceeded." Maintains 290p price target. Shares closed Friday at 290.2p. ([email protected]) 0558 GMT [Dow Jones] Citigroup downgrades Victrex (VCT.LN) to hold from buy, saying the shares have risen 45% year-to-date. Says on cycle-year '10 earnings Victrex shares trade on 18.8x PE and 11.5x EV/Ebitda, which is at the top of its historical range. However, increases the price target to 1150p from 1100p. Sees EPS momentum skewed to the upside given the potential growth of Invibio, and the probability that sterling remains weak and the economy continues to recover. Lifts '10 EPS forecast to 61.1p from 59.7p, and '11 EPS to 71.3p from 64.9p. Shares closed Friday at 1140p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 21, 2010 02:46 ET (06:46 GMT)