UK MARKET TALK ROUNDUP: BROKERS COMMENTS

18th Jun 2010 07:33

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] 0633 GMT [Dow Jones] Morgan Stanley downgrades Hikma Pharmaceuticals (HIK.LN) to equalweight from overweight but raises price target to 750p from 700p. The bank says a Middle East and North Africa site visit confirmed fundamentals, but MS says the scope for upgrades is limited and the potential risk of dilution leads to the downgrade. The bank asumes $300M is spent on MENA acquisitions, but the probability of Hikma issuing equity to part-fund any deal has increased. Shares closed Thursday at 675p. ([email protected]) 0627 GMT [Dow Jones] UBS upgrades William Hill (WMH.LN) to buy from neutral. Says that since the end of March 2010, the stock is down 15%, which is unjustified. "Based on our FY'11 estimates the stock is now trading on PE circa 8x and offers a cash flow yield of over to 9%," it says. Adds that post rights issue, "there are no significant balance sheet concerns." Has a 215p target price. Shares closed at 178p. ([email protected]) 0614 GMT [Dow Jones] Goldman Sachs downgrades WS Atkins (ATK.LN) to neutral from buy following the stock's recent outperformance, as a result of which the potential upside implied by the brokerage's price target is now below the median of its coverage universe. Notes the company reported mixed FY'10 results, with sales 7% below Goldman's estimate but Ebit 10% ahead. Has a 6-month price target of 836.4p. Shares closed Thursday at 696p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 18, 2010 02:33 ET (06:33 GMT)