UK MARKET TALK ROUNDUP: BROKERS COMMENTS

22nd Jun 2010 07:30

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] 0630 GMT [Dow Jones] Bunzl's (BNZL) trading statement is in line with expectations, says an analyst. Notes in particularly the company's success in winning business in the US is good news. Also sees better margins in the UK and Ireland, although revenue in the first half is below the same period last year in these regions due to economic conditions. Says the company is flagging up further acquisitions being finalized during the remainder of the year, which is always good news for Bunzl. Shares closed on Monday at 746.5p. ([email protected]) 0602 GMT [Dow Jones] JPMorgan Cazenove downgrades EasyJet (EZJ.LN) and Ryanair (RYA.DB) to neutral from overweight as it takes a look at the airline sector. EasyJet's share price performance is being overshadowed by Stelios's disagreements with the board over strategy, says GS. Until these issues are resolved permanently, the share performance is likely to remain muted. Where Ryanair is concerned, the brokerage says it remains one of its favorite picks for the medium term. However, in the short term, relative share price performance risks are being eclipsed by a recovery in the flag carriers. EasyJet shares closed Monday at 426p, Ryanair at EUR3.67.([email protected]) 0601 GMT [Dow Jones] Goldman Sachs downgrades BG Group (BG.LN) to neutral from buy, and cuts its target price to 1355p from 1400p as it takes a look at the E&P sector. Says after recent relative strong price performance, BG offers only 21% upside to its target price, in line with sector average. Goldman also notes the group's key new development areas are facing the risk of delays - "Australia from the Henry tax, Brazil from new, stricter deepwater regulation, and Kazakhstan by disagreements with the government." Shares closed Monday at 1125p. ([email protected]) 0600 GMT [Dow Jones] UBS upgrades Michael Page International (MPI.LN) to buy from neutral, saying the company's 2Q results on July 7 should mark the return to growth. "After steadily improving results during the last three sets of figures - each of which have beaten market expectations - we expect the company to return to growth at this point with organic revenue up around 20%." Expects growth to accelerate after that, but not at '04-'07 levels. Notes Page enjoys strong cash flow. Has 465p price target. Shares closed Monday at 403p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 22, 2010 02:30 ET (06:30 GMT)