UK MARKET TALK ROUNDUP: BROKERS COMMENTS

10th Jun 2010 07:34

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0634 GMT [Dow Jones] UBS raises Carpetright (CPR.LN) to neutral from sell, believing that the recent de-rating leaves the stock more fairly valued, both on absolute valuation and relative to the sector. Still, "we remain cautious regarding the near term outlook for Carpetright, with consumer spending likely to remain tight, but think that this is balanced by good prospects in the longer term when the market recovers," adds UBS. As a result, it lowers Carpetright target price to 680p from 750p. Shares closed at 667p. ([email protected]) 0627 GMT [Dow Jones] Home Retail's (HOME.LN) first-quarter results are in-line with forecasts overall, but sales at Argos are disappointing, Seymour Pierce analyst Freddie George says. He says sales at Homebase are a little better than forecasts. Shares closed Wednesday at 238p. ([email protected]) 0620 GMT [Dow Jones] Goldman Sachs upgrades Cable & Wireless Communications (CWC.LN) to neutral from buy, and lifts its target price to 71p from 58p. Says the FY '10 results showed unappealing organic growth trends but were more than offset by a material forex benefit. Doesn't expect the continued weakness in CWC's key markets to subside in the near term, but notes since the stock was added to the Sell List on March 29 it has risen 1.9% versus the drop of around 15% in the FTSE World Europe index. Shares closed at ([email protected]) 0607 GMT [Dow Jones] JPMorgan Cazenove initiates coverage of Essar Energy (ESSR.LN) at overweight with a 525p price target. Sees two key catalysts ahead. Thinks the company will benefit significantly from pump price deregulation in India as the company is the largest private fuel retailer in the region. Also notes that the management is confident the Ratna production sharing contract will be finalized by the end of June or early July. Also, thinks the valuation is attractive. Shares closed Wednesday at 450p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 10, 2010 02:34 ET (06:34 GMT)