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 0728 GMT [Dow Jones] Credit Suisse upgrades Intertek (ITRK.LN) to outperform from neutral and target to 1800p from 1600p. Notes strengthening market indicators, recent acquisitions, and better-than-expected growth and margin guidance at the 4 month interim statement. Reckons the market underestimates Intertek's growth potential over the medium term. Says this creates the potential for earnings upgrades and multiple expansion to drive the stock. Notes Intertek trades at greater-than-average discounts to peers, despite more robust growth in the recent downturn and greater growth potential in the medium term. Shares +0.6% at 1585p. (michele.maatouk@dowjones.com) 0712 GMT [Dow Jones] Citigroup downgrades National Grid (NG.LN) to hold from buy and target to 500p from 611p. Says now the dust has settled on the surprise GBP3.2B rights issue, three issues will determine the company's future: "the UK capex surge, how the capex/dividend is funded, and the likely strategic review of National Grid's US operations." Notes the new UK government seems committed to the environmental targets it inherited. In response, National Grid has upped its capex, Citi says. Adds that unless government policy changes, the capex is only likely to rise further. Shares -0.5% at 500p. (michele.maatouk@dowjones.com) 0701 GMT [Dow Jones] Goldman Sachs downgrades Randgold Resources (RRS.LN) to sell from neutral but raises price target to 6740p from 6530p. Feels it is one of the few stocks in its coverage universe that is pricing in the bulk of the value from its growth projects. "As a result, we are concerned that should there be evidence that one of the four projects under development starts to slip behind budget or schedule, the shares could react badly." Shares -0.6% at 6210p. (michele.maatouk@dowjones.com) 0659 GMT [Dow Jones] Goldman Sachs downgrades Hochschild Mining (HOC.LN) to neutral from buy but raises price target to 456p from 389p. Says after outperformance of the brokerage's European Metals coverage in the last 3 months, the upside potential implied by its revised 12-month price target no longer stands out. Still, says within GS's precious metals coverage, Hochschild shares still offer a good absolute valuation as well as gold and silver exposure at a valuation multiple discount to peers. Shares closed Thursday at 318p. (michele.maatouk@dowjones.com) 0658 GMT [Dow Jones] Bovis Homes's (BVS.LN) 1H performance is solid but not dramatic, says KBC Peel Hunt. Says land spending is higher than the brokerage expected, which could lead to more rapid volume expansion across the next three years. "More aggressive land acquisition is the smart move - we believe it is right to buy land now even if prices are likely to slip back. It provides assurance and visibility into how margins can recover." Adds that the shares remain expensive. Keeps the stock at sell, with 365p price target. Shares closed Thursday at 349p. (michele.maatouk@dowjones.com) 0655 GMT [Dow Jones] Interserve's (IRV.LN) 1H update confirms trading in line with expectations, says KBC Peel Hunt. Notes the order book has been maintained at around GBP6B, but says the tone of the statement is more cautious. Says cash flow performance should have been robust but expects favorable working capital movement to reverse in 2H. Brokerage maintains its Dec '10 pretax profit estimate of GBP68M and EPS estimate of 37.5p. Keeps the stock at hold, given that with the impending UK public sector pressures there are no immediate catalysts. Has 200p price target. Shares closed Thursday at 202p. (michele.maatouk@dowjones.com) 0623 GMT [Dow Jones] HSBC initiates coverage of UK house builders. Expects 5% to 35% falls in the share prices of the five UK house builders with the biggest exposure to northern regions based on its construction team's forecast of a 5% regionally-weighted contraction in house prices in '10-'11. Sees the long-term recovery of house-builder stocks restrained by limited affordability and restricted mortgage availability. Starts Berkeley Group (BKG.LN) and Bovis Homes (BVS.LN) at neutral with 823p and 374p targets, respectively. Starts Barratt Developments (BDEV.LN), Persimmon (PSN.LN) and Redrow (RDW.LN) at underweight with 61p, 278p and 107p targets, respectively. Also starts Taylor Wimpey (TW.LN) and Bellway (BWY.LN) at underweight with 21p and 525p targets. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 09, 2010 03:28 ET (07:28 GMT)