UK MARKET TALK ROUNDUP: BROKERS COMMENTS

8th Jul 2010 07:19

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] 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 02:19 ET (06:19 GMT)