UK MARKET TALK ROUNDUP: BROKERS COMMENTS

12th Jul 2010 07:51

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] 0651 GMT [Dow Jones] Thomas Cook Group's (TCG.LN) acquisition of German tour operator Oger Tours "makes sense strategically" as the operator takes advantage of needed consolidation in the important German market, says Numis Securities analyst Wyn Ellis. Adds, however, that EUR30M deal is small and unlikely to move shares. Stock closed Friday at 192p. ([email protected]) 0637 GMT [Dow Jones] JPMorgan Cazenove upgrades Stagecoach (SGC.LN) to overweight from neutral, following a better-than-expected FY '10. Also upgrades on the possibility of a significant capital return to shareholders, assuming no acquisitions present themselves. Sees about 20% upside to the 218p price target. In general for UK public transport, says uncertainty about the impact of the spending review is likely to persist until the outcome of the review is known in the autumn. But thinks public transport operators will be able to cope with cutbacks as long as they are introduced gradually. Stagecoach shares closed Friday at 184p. ([email protected]) 0627 GMT [Dow Jones] Citigroup upgrades Michael Page (MPI.LN) to buy from hold and lifts the price target to 460p from 400p. This follows the company's results, with accelerating gross profit in 2Q '10, up 33% year-on-year or 14% sequentially. This compares to a 7% sequential improvement in 1Q '10, says Citi. It says the operations in the UK has turned a corner and have seen a slight improvement in Europe. It adds that the investment in emerging markets is paying off. Citi lifts '10 EPS forecast to 15.2p from 11.6p and '11 to 32.4p from 30.6p. It notes recent share price weakness. Shares closed Friday at 393.4p.([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 12, 2010 02:51 ET (06:51 GMT)