Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, markets.eu@dowjones.com Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com 0621 GMT [Dow Jones] The levy on banks imposed by the UK Chancellor is not as bad as expected and there is the further relief in the form of an unexpected cut in the corporate tax rate, says Citigroup. Lloyds Banking Group (LLOY.LN) is the clear winner in the budget. It estimates the net effects on Lloyds' FY '12E earnings will be an increase of GBP132M. Other banks will suffer small negative net hits to FY '12 attributable earnings; GBP36M for Standard Chartered (STAN.LN), GBP52M for Royal Bank of Scotland (RBS.LN), GBP52M for Barclays (BARC.LN) and GBP83M for HSBC (HSBA.LN). Lloyds shares could rally strongly from here over the next few weeks. Lloyds rated buy. Shares closed Tuesday at 59p. (andrea.tryphonides@dowjones.com) 0619 GMT [Dow Jones] The VAT increase announced by the UK Chancellor will benefit UK water and energy networks, says Deutsche Bank. Says the increase will be a benefit for the regulated networks since it will feed through to inflation via the retail price index. Says the government's revised RPI forecasts look extremely attractive and would imply asset base and earnings growth for the UK water and energy networks in excess of what is currently reflected in share prices or consensus estimates. Notes though RPI inflation benefits may be slightly offset by reductions in capital allowances for investment in plant and machinery. (andrea.tryphonides@dowjones.com) 0612 GMT [Dow Jones] Citigroup lifts Whitbread (WTB.LN) price target to 1700p from 1645p following the company's 1Q update. Citigroup raises its '11 EPS forecast to 104.7p from 99.7p and its '12 EPS estimate to 114.9p from 109.5p to reflect the strong 1Q performance at Premier Inn. However "Whitbread's capital-heavy rollout model absorbs considerable free cash flow, which reduces our valuation upside. Combined with the more limited international exposure and lower operational gearing, this leads us to retain our hold rating." Shares closed Tuesday at 1531p. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 23, 2010 02:21 ET (06:21 GMT)