UK MARKET TALK ROUNDUP: SHARES LOSING

30th Jul 2010 10:19

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] 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 05:19 ET (09:19 GMT)