UK MARKET TALK ROUNDUP: SHARES LOSING

19th Jul 2010 08:21

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] 0721 GMT [Dow Jones] Credit Suisse downgrades BHP Billiton (BLT.LN) to neutral from outperform, after lowering the company's earnings by 4% in FY '10, 16% in FY '11 and 12.5% in FY '12, due to changes to commodity price forecasts. Sees negative medium-term catalysts ahead. Maintains 2300p price target. Similarly, reduces Rio Tinto (RIO.LN) price target to 4500p from 5000p after reducing FY '10 earnings forecast by 11%, and by 19.5% in both FY '11 and FY '12, due to the brokerage's commodity prices revisions. BHP Billiton shares -0.5% at 1802p and Rio Tinto -0.1% at 3001p. ([email protected]) 0714 GMT [Dow Jones] Evolution Securities downgrades Associated British Foods (ABF.LN) to neutral from buy, but maintains its target price at 1090p. Its shares are up 30% since December relative to the FTSE 100, while earnings forecasts have been upgraded 13% and Evolution sees now as a good time to bank profits. It says the most recent IMS was more mixed than the four previous updates plus it sees limited upside to 2011 earnings, while Primark gross margin pressures are beginning to build. Evolution's 2011 EPS forecast is 74.9p vs consensus at 76.7p, reflecting the recent strength of sterling plus higher interest assumptions. Shares -0.4% at 1052p. ([email protected]) 0712 GMT [Dow Jones] Credit Suisse downgrades Anglo American (AAL.LN) to neutral from outperform, after the stock outperformed peers since August '09. CS cuts the price target to 3000p from 3600p and the stock is removed from the brokerage's focus list. CS says the restructuring/growth story is priced-in. Heading into the interim results on July 30, CS is concerned over potential negative catalysts, primarily from the Minas Rio project. It warns that further bad news on that issue would deal a blow to management, making delivery in other areas an imperative. Shares -0.9% at 2317p.([email protected]) 0708 GMT [Dow Jones] American International Group's (AIG) appointment of Mark Tucker, a former CEO of Prudential (PRU.LN), as the new head of its overseas life insurance unit, AIA Group Ltd., forms part of AIG's strategy to launch an IPO of the Asian unit, following its refusal to accept a reduced bid from Prudential a number of weeks back, notes Shore Capital. "The news is likely to generate considerable speculation that one of AIA's first moves as a quoted company will be to launch a bid for Prudential, with the aim of acquiring Pru's own Asian units and combine them with its own," says Shore. Keeps a buy rating on Pru. Prudential shares -0.8% at 518p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 19, 2010 03:21 ET (07:21 GMT)