UK MARKET TALK ROUNDUP: SHARES LOSING

7th Jul 2010 14:04

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] 1304 GMT [Dow Jones] Exane BNP Paribas cuts Thomas Cook (TCG.LN) price target to 260p from 310p and TUI Travel (TT.LN) price target to 280p from 330p. Rates both the stocks at outperform. Thinks the recent weakness offers a good entry point ahead of the mid-August 3Q results. Thinks '11 could turn out to be another challenging year for the industry, although says holidays remain a key spending item. Says with capacity under control, tour operators' earnings should remain fairly resilient with further internal restructuring in store. Thomas Cook is -3.6% at 178p and TUI Travel is -1.4% at 212p. ([email protected]) 0928 GMT [Dow Jones] Investec cuts N Brown Group (BWNG.LN) price target to 300p from 325p. Brokerage is cautious on shorter-term prospects due to the slow-down in sales after the general election. Says that the management ascribes the sales deceleration of the last ten weeks to customer concerns on their personal financial situations. As a result, cuts '11 EPS forecast to 25.3p from 25.8p, '12 to 27.2p from 28.0p and '13 to 29.0p from 29.8p. However, remains positive on N Brown, given its solid and well-managed core business. Keeps buy recommendation. Shares -1.0% at 241p. ([email protected]) 0849 GMT [Dow Jones] Societe Generale cuts Hansen Transmissions International (HSN.LN) price target to 74p from 95p. Says the focus is on rival technological developments, and in particular competition from Siemens (SIE.XE), rated at buy, in direct drive wind turbines. Thinks a significant short-term rebound for Hansen is unlikely given the current valuation and lack of catalysts. Remains unconvinced of a wind power market rebound in 2H '10, which could also be penalized by the lackluster US market. Maintains hold recommendation. Shares -1.9% at 66.7p. ([email protected]) 0813 GMT [Dow Jones] Marks & Spencer's (MKS.LN) first-quarter trading update is solid, but unexciting, Hargreaves Lansdown analyst Richard Hunter says. Also says, in the background, concerns still linger around the staff pension deficit and ongoing pressure on margins. "The update is unlikely to improve the current market view of the shares being a hold, with more potential to be found elsewhere," Hunter says. Shares -2.3% at 344p. ([email protected]) 0713 GMT [Dow Jones] Marks & Spencer's (MKS.LN) first-quarter sales show a strong start to the year, Shore Capital analyst Kate Calvert says. Believes the consensus forecast for full-year pretax profit may nudge above GBP700 million based on a higher-than-expected general merchandise sales. However, Calvert expects the shares to continue to drift as they have rallied into this statement in anticipation. Has a sell rating. Shares -1.8% at 346p. ([email protected]) 0711 GMT [Dow Jones] Marks & Spencer's (MKS.LN) first-quarter general merchandise sales are better-than-expected, Seymour Pierce analyst Freddie George says. "General Merchandise sales benefited from easy comparatives from the previous year, stronger fashions particularly in respect of the Spring/Summer season, and a recovery in sales at Per Una," George says. Believes CEO Bolland will have a positive impact on the lagging food business in the medium term. Has a buy rating. Shares -1.3% at 348p. ([email protected]) 0708 GMT [Dow Jones] Barclays Capital initiates coverage of Cobham (COB.LN) at underweight with 220p price target. Expects EPS growth to slow from the strong double-digit pace of '05-'09 to mid/upper single digits, due to order delays and budget and price pressures. Says concerns over defense cuts are likely to depress multiples and performance for some time and as a result, expects defense names to underperform commercial aerospace. "While Cobham has some scope to acquire new businesses, competition may be intense, and potential divestitures could be dilutive." Shares -1.4% at 217p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 07, 2010 09:04 ET (13:04 GMT)