UK MARKET TALK ROUNDUP: SHARES LOSING

22nd Jun 2010 08:16

Stocks on the fall in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0716 GMT [Dow Jones] Seymour Pierce downgrades Bunzl (BNZL.LN) to hold from buy, as the shares have reached its target price. Says the shares have had a strong run and are now trading on 13.1x 2010 earnings. Notes the company's 2Q trading update indicates there has been some progress since 1Q. Says overall the markets are strong in North America and revenues were ahead of the same period last year in Continental Europe. However, says the UK and Ireland remains weak, down on the same period last year. Has 750p price target. Shares -1.8% at 733p. ([email protected]) 0713 GMT [Dow Jones] Mitchells & Butlers (MAB.LN) remains a high risk company following the appointment of Tim Jones as finance director, Seymour Pierce analyst Hugh-Guy Lorriman says. "I believe it is very high risk in three areas--ownership, management and the balance sheet." Says the group's first-half results in May were "creditable", but adds the group is highly leveraged and it has underperformed for the last two years. Has a sell rating, and 230p target price. Shares -1.5% at 300p. ([email protected]) 0706 GMT [Dow Jones] Shore Capital retains its cautious view on Tesco's (TSCO.LN) Fresh & Easy business from a valuation perspective, after the supermarket giant is reported to have taken over its two key suppliers to the business. Thinks the acquisition may add to the near term losses of Fresh & Easy, extending the drag to earnings in the current year. But Shore anticipates robust EPS growth from Tesco Group, with the prospect of accelerating growth as the drag effect eases. Has Tesco at buy. Tesco shares are -1.2% at 383.5p. Tesco was not immediately available for comment. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 22, 2010 03:16 ET (07:16 GMT)