UK MARKET TALK ROUNDUP: SHARES LOSING

27th Jul 2010 11:16

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] 1016 GMT [Dow Jones] Collins Stewart downgrades Provident Financial (PFG.LN) to sell from hold, as the share are trading above CS's 800p price target. The 1H '10 results read positively, the group is well funded and it is able to honor its commitment to pay a 25.4p interim dividend, says CS. It warns though that the government's austerity program may hit forecasts. It fears management may reduce Home Credit lending in 2H '10 and market forecasts may prove to be too high. Shares are -4.4% at 844p. ([email protected]) 0945 GMT [Dow Jones] Goldman Sachs increases Anglo American (AAL.LN) price target to 4480p from 4085p, reflecting the substantial increase in the brokerage's platinum group metal (PGM) price forecasts for FY '11-'14. Given this, Goldman's expectations for the earnings stream from Anglo Platinum in the Anglo American group also increase, driving higher cashflows and a faster reduction in net debt over '10-'13E. Keeps Anglo American at buy. Shares are -0.3% at 2531p. ([email protected]) 0750 GMT [Dow Jones] HSBC downgrades Rentokil Initial (RTO.LN) to underweight from neutral and cuts target price to 90p from 110p. "We are concerned about weak contract retention rates in recent quarters, in spite of management's focus on service levels." Also sees a risk that 'ad hoc' spot business declines during the recovery will offset some benefits from cost savings. Shares -1% at 108p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 27, 2010 06:16 ET (10:16 GMT)