UK MARKET TALK ROUNDUP: BROKERS COMMENTS

13th Jul 2010 07:30

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] 0630 GMT [Dow Jones] Dunelm's (DNLM.LN) trading update is reassuring, says Arden Partners. Says 4Q sales are not as bad as feared. Notes a small upgrade to consensus and says it will be raising its pretax profit estimate for '10 to GBP76M from GBP73.5M. Reiterates add rating and 390p price target on the stock. Shares closed Monday at 358p. ([email protected]) 0621 GMT [Dow Jones] Burberry's (BRBY.LN) first-quarter trading update shows very good numbers, Investec analyst Katharine Wynne says. Adds she would be surprised if the stock does not rise on the results. Keeps hold rating. Shares closed Monday at 789p. ([email protected]) 0557 GMT [Dow Jones] Numis Securities initiates coverage of Hochschild Mining (HOC.LN) at hold with a 330p target. "We believe Hochschild has limited growth from current operations and is now looking to shift from silver to gold, driving the company forwards with its strategic investments and earlier stage exploration properties." Numis expects Hochschild to remain active in M&A, looking to increase its investments or pursuing new opportunities. It sees some near-term upside to its target price, but not enough to form an overly bullish view on the stock at this stage. Shares closed Monday at 306p. ([email protected]) 0554 GMT [Dow Jones] Morgan Stanley initiates coverage of Cable & Wireless Communications (CWC.LN) at equalweight with a 72p price target. The dividend for FY '11E is attractive and should provide solid support for the shares. But Morgan Stanley sees no imminent catalysts and does not factor in a recovery in the Caribbean until FY '12. It acknowledges the improved operating performance, particularly in Macau and Panama, but sees better upside elsewhere in the sector. The bank says the 21% upside implied by the price target is lower than that of mid-cap stocks Freenet (FNTN.XE), Iliad (ILD.FR) and TalkTalk Telecom (TALK.LN), rated at overweight. CWC shares closed Monday at 59p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 13, 2010 02:30 ET (06:30 GMT)