UK MARKET TALK ROUNDUP: SHARES LOSING

30th Jul 2010 10:45

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] 0945 GMT [Dow Jones] Citigroup raises Admiral Group (ADM.LN) target price to 1550p from 1250p. "We think the sun, the moon and the stars are coming into perfect alignment in UK motor, such that strong share price momentum is likely to continue at least into 1H results," says brokerage. However, says the unique nature of the business makes it difficult to judge whether or not all of this is in the price. "This good news will underpin the shares at around the 1500p level rather than help it push onto new highs," adds Citi. Has a hold rating on the stock. Shares -0.3% at 1458p. ([email protected]) 0936 GMT [Dow Jones] Panmure cuts its target price on Rentokil Initial (RTO.LN) to 148p from 151p, following the release of 2Q results. Says 2Q results are 5.5% ahead of its forecast at the adjusted pretax profit level, and cost savings are running ahead of the full year target, with cash generation remaining strong. However, Panmure trims its FY EPS forecasts by around 3%, to take account of forex pressure on the back of a weaker euro, and thus cuts its target price. Still, keeps at buy with in excess of 40% upside potential in its share price. Shares -0.8% at 106p. ([email protected]) 0935 GMT [Dow Jones] Societe Generale cuts BAE Systems (BA.LN) price target to 360p from 400p. It says BAE's 1H results are strong and well ahead of consensus expectations. But it notes that management talks of the anticipated challenging trading environment as defense budgets come under pressure. SG says this is being addressed by cost reduction and efficiency improvements. It also thinks investors are waiting for the publication of the strategic defence and security review in late October. Keeps at buy. Shares are -0.3% at 319p. ([email protected]) 0919 GMT [Dow Jones] Nomura lowers BAE Systems (BA.LN) target price to 410p from 450p. Says this cut in target price is to account for a higher risk premium investors are likely to demand given the increased long-term budget uncertainty in the U.S. and Europe. However, describes the company's 1H results as strong. Adds that concerns about budgetary pressures have kept investors from focusing on the company's structural growth outlook and strong cash generation. But "with the diminishing outperformance of the industrial cyclicals and with BAE trading on an estimated 2011 P/E of 7.3x, we think BAE shares are poised for a rebound," says brokerage. Has a buy rating. Shares -0.1% at 320p. ([email protected]) 0816 GMT [Dow Jones] Numis Securities downgrades United Business Media (UBM.LN) to hold from add. It notes the shares have had a strong recent run. However it lifts its target price to 600 pence from 572 pence following the group's interim results. It says the numbers are ahead of expectations, with exhibition businesses performing well. Shares -5% at 545 pence. ([email protected]) 0719 GMT [Dow Jones] Seymour Pierce downgrades Homeserve (HSV.LN) to hold from buy, with a target price of 2200p. The 1Q trading update is low in detail, although Homeserve indicated progress in the year to date is in line with its expectations. Seymour says it has no doubts about the quality of the Homeserve business model and it sees significant growth opportunities in Europe and the US, although the share price is now ahead of events. Shares -1.6% at 2265p. ([email protected]) 0704 GMT [Dow Jones] Arden Partners downgrades Homeserve (HSV.LN) to neutral from buy. Homeserve has been on the brokerage's conviction buy list, but following outperformance during which the shares exceeded Arden's target of 2250p, a neutral rating is warranted, says the brokerage. On the company's update, Arden says it is a simple message on rising policy numbers and high retention rates across the company's territories. Arden adds that the company's key trading period is in 2H. Shares -1.3% at 2272p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 30, 2010 05:45 ET (09:45 GMT)