UK MARKET TALK ROUNDUP: BROKERS COMMENTS

23rd Jul 2010 07:06

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] 0606 GMT [Dow Jones] Deutsche Bank initiates Carillion (CLLN.LN) at buy with 393p target. Says in response to the UK Government's 30% cut to capital expenditure by the end of the current parliament, Carillion is phasing down its UK construction revenues by GBP600M over the next three years. Expects a hiatus in new public-private partnerships projects in the near term. These pressures on UK construction and PPP have been factored into Deutsche Bank's forecasts. Sees medium-term growth in areas such as Canadian PPP and Middle East construction. Carillion shares closed Thursday at 319p. ([email protected]) 0600 GMT [Dow Jones] Charles Stanley initiates its coverage of Mothercare (MTC.LN), with a hold rating and a 500p price target. Says Mothercare has a reputation as one of the best long-term investment stories in the UK general retail sector. However, says the recent increasing uncertainty surrounding trading at the UK business deters it from being more constructive on the stock, for now. Says recent trading statements show how dependent group profitability still is on Mothercare's highly operationally geared UK business. Therefore, short-term uncertainty with regards the UK outweighs the long-term attractions. Shares closed Thursday at 526p.([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 23, 2010 02:06 ET (06:06 GMT)