UK MARKET TALK ROUNDUP: SHARES LOSING

15th Jun 2010 15:25

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] 1425 GMT [Dow Jones] Evolution Securities Tuesday raises its target price for Petrofac (PFC.LN) to 1300p from 1201p, saying it reflects the continuing boom in its largely onshore Middle East and Africa engineering and construction activities, but maintains the company's rating at add. Evo says the oil services company has avoided North American exposure as well as deep water and is unlikely to be adversely affected by the short-term and long-term implications of drilling moratoria or offshore project delays. Shares -0.8% at 1276p. ([email protected]) 1123 GMT [Dow Jones] Bank of America Merrill Lynch cuts Dana Petroleum (DNX.LN) price target to 1450p from 1570p. Dana's acquisition of PetroCanada's Dutch assets, whilst reasonable, raises questions marks over Dana's strategic direction, says BofA. It questions the rationale of expanding the footprint in infrastructure and declining Dutch upstream assets, as this may come at the expense of growth in other parts of the portfolio, such as Egypt and West Africa. BofA reduces its NAV and price target to 1450p, noting a higher capex requirement. However it maintains that the risk/reward is favorable. Buy rating. Shares -2.8% at 1072p. ([email protected]) 1002 GMT [Dow Jones] Charles Stanley initiates Homeserve (HSV.LN) at buy with 2525p price target, saying overseas operations are likely to drive material growth. Says operating profits will increase by 166% by '15 if the growth path established in the UK is matched overseas, in France, Spain, Belgium and the U.S. Sees a number of catalysts for earnings upgrades: "renewed management focus on growth opportunities in the UK, a reduction in the time taken to break even in new overseas markets and the strength of the balance sheet." Shares -0.2% at 2035p. ([email protected]) 0933 GMT [Dow Jones] Exane BNP Paribas raises Dana Petroleum (DNX.LN) price target to 1600p from 1450p after the company announces the acquisition of Petro-Canada Netherlands. Says Dana is balancing the portfolio across the core North Sea area, concentrating on gas. Says the acquired assets will be cash-generative and excluding the forex impact, the deal is accretive from year one. Says Dana remains focused on exploration. Keeps at outperform. Shares -0.9% at 1093p.([email protected]) 0926 GMT [Dow Jones] Merchant John East keeps its buy on healthcare staffing agency Healthcare Locums (HLO.LN) despite bid talks ending. Says end of talks means the firm may make acquisitions in the specialist temporary nurses sector. Adds that the change in accounting policy which led to the pre-bid price fall was badly handled but isn't a sign of deeper problems. Reckons the shares are worth 300p without any bid premium. Shares -17% at 180p. ([email protected]) 0904 GMT [Dow Jones] Bellway's (BWY.LN) trading statement is in line with expectations, says Panmure Gordon. The company reports that for the current financial year it expects sales to be about 200 units higher than that reported in '09. The brokerage notes though that since the general election, uncertainty has led to a slowdown in sales, but Panmure expected this. With the stock trading on a 27% discount to '10 calendarized NAV, says recent share price weakness represents a buying opportunity. Maintains buy recommendation and 868p price target. Shares are -1.6% at 625p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 15, 2010 10:25 ET (14:25 GMT)