UK MARKET TALK ROUNDUP: SHARES LOSING

24th Jun 2010 12:37

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] 1137 GMT [Dow Jones] Evolution Securities downgrades Micro Focus International (MCRO.LN) to neutral from buy and places its 602p price target under review. Says the unexpected departure of the company's chief financial officer is a major negative. Notes: "Nick Bray together with Stephen Kelly were the architects behind the Micro Focus turnaround and M&A campaign from '06 on, so for them to both leave within 12 months of one another is unwelcome and will prompt speculation over real prospects for the business." Notes the company's FY results are broadly as pre-announced, but says guidance is slightly disappointing. Shares -11% at 470p. ([email protected]) 1052 GMT [Dow Jones] Panmure Gordon cuts Go-Ahead Group (GOG.LN) price target to 1600p from 1700p to reflect the margin decline in the regulated London operations, following the company's trading update. Still, thinks the share price will be supported by the attractive and safe dividend yield, which currently stands at 6.1%. Says the balance sheet is robust and the recent GBP300M bond issue has extended the debt maturity profile. Keeps the stock at buy. Shares -8.4% at 1208p. ([email protected]) 0924 GMT [Dow Jones] Micro Focus's (MCRO.LN) solid FY results will be overshadowed by CFO Nick Bray's resignation, UBS says. "While not a complete surprise (as he was not made CEO), it is a negative given his strong stewardship of MF interregnum and the fact CEO Clifford only started on 1 May," broker says. UBS thinks Micro Focus "may have had some concerns here and hope for an early announcement" within the next three to four months. UBS retains a buy rating on Micro Focus and 570p price target. Shares -12.2% at 463p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 24, 2010 07:37 ET (11:37 GMT)