UK MARKET TALK ROUNDUP: SHARES LOSING

29th Jul 2010 14:34

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] 1334 GMT [Dow Jones] Arbuthnot cuts EasyJet (EZJ.LN) price target to 450p from 480p following the company's 3Q update. The unchanged FY guidance masks several problems Arbuthnot says. A stronger revenue outlook offsets a worse cost picture, with greater operational problems necessitating extra spending. Despite encouraging demand, the brokerage remains cautious for the short term. It sees a number of potential negative catalysts in the near term, such as the dispute with the group's largest shareholder and the risk of further operational disruption. Neutral recommendation. Shares -2.5% at 393.4p. ([email protected]) 1133 GMT [Dow Jones] Royal Bank of Scotland cuts EasyJet (ESJ.LN) price target to 430p from 460p. Royal Bank of Scotland is not tempted to advise investors to take advantage of recent share price weakness. It awaits clarity over the legal dispute with founder Stelios Hadji-Ioannou and over the management's business plan. It says consensus for low cost carriers next year is overly optimistic, given dollar headwinds, taxes following austerity measures and aviation taxation. Hold recommendation. Shares -1.9% at 396p. ([email protected]) 1013 GMT [Dow Jones] Credit Suisse cuts BG Group (BG.LN) price target to 1280p from 1335p, leaving 23% upside. Says the 2Q '10 results are a touch ahead, with net income 12% ahead of consensus and EBIT 5% above consensus. However, exploration and production misses expectations. Says production declines 2% year-on-year due to heavier than usual maintenance in the North Sea and Kazakhstan. Notes the stock has de-rated in recent months as volume growth turns negative, which offers a buying opportunity for investors. Keeps at outperform. Shares -1.4% at 1025p. ([email protected]) 0959 GMT [Dow Jones] Goldman Sachs nudges down BG Group (BG.LN) price target to 1350p from 1355p. The company reports good 2Q results, but exploration and production disappoints with EBIT 12% below the brokerage's estimates on lower realizations and higher costs. Maintains neutral recommendation. "BG offers high profitability and unique visibility on a decade of high-single-digit volume growth." But volume growth is likely to be subdued over the next two to three years, with most extra volumes coming from low-margin areas such as US gas says Goldman. Shares -1.4% at 1024.5p. ([email protected]) 0713 GMT [Dow Jones] Credit Suisse downgrades Rexam (REX.LN) to neutral from outperform, and lowers its target price to 360p from 375p. Cuts its 2011 and 2012 earnings estimates on an expected weaker outcome from major contract negotiations in the beverage can business. Adds the company expects North American 2011 beverage-can earnings to remain flat; "we had expected a material improvement." Says the near term outlook is a set back in the long term rerating story, and "we struggle to see the catalysts for the share to perform in the near term." Shares -1.1% at 324p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 29, 2010 09:34 ET (13:34 GMT)