Lloyds Share News (LLOY)

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 1515 GMT [Dow Jones] The newly-announced U.K. bank levy to raise roughly GBP2B is better than feared, says Oriel Securities analyst Mike Trippitt. Oriel sees Barclays (BCS) having a relatively large exposure because of its big balance sheet, with Standard Chartered (STAN.LN) and HSBC Holdings (HBC) paying less because of their high retail deposits. Lloyds Banking Group (LYG) and Royal Bank of Scotland (RBS) will also be less hit as time progresses because of their ongoing reduction in wholesale funding. Barclays -2.1%, RBS +0.5%, HSBC -0.1%, Lloyds +3.3%, and Standard Chartered -0.7%. (margot.patrick@dowjones.com) 1349 GMT [Dow Jones] Banking and retail stocks recoup losses and gain following the UK Budget Report. Traders note the levy on banks is less severe than had been expected. "The levy is set to raise as much as GBP2B [a year] when earlier estimations by the market were that it could be more aggressive and raise GBP3B," says Joshua Raymond at City Index. Meanwhile, retailers also get a boost from Osborne's speech. "Whilst the VAT hike is likely to have an effect on the ability of consumers to spend cash, the hike to 20% is a little less severe than some of the more drastic numbers speculated and by delaying the hike to next year, it gives retailers and consumers an adjustment period to get their houses in order," says Raymond. Marks & Spencer (MKS.LN) +3.2% and Next +2.7%, while Lloyds Banking Group +2.7% and RBS +0.3%.(michele.maatouk@dowjones.com) 1335 GMT [Dow Jones] The timing of the rise in value-added-tax to 20% from 17.5% from January 4 next year protects the key Christmas trading period and will benefit retailers, says Head of Retail & Wholesale at Barclays Corporate, Richard Lowe. He says the timing will also help stimulate sales between now and then as shoppers bring planned big-ticket purchases forward before the change. He says retailers will have been looking at cost bases and price points since January 2010. DSG +2.8% at 28p, M&S +2.6% at 352p, Next +2.3% at 2193p, Tesco +1.9% at 395p. Sainsbury +0.8% at 332p. (simon.zekaria@dowjones.com) 1311 GMT [Dow Jones] The rise in value-added-tax to 20% from 17.5% from Jan. 4 next year will squeeze discretionary income in '11 and will make it harder for retailers to maintain performance levels, Shore Capital analyst Clive Black says. However, Black adds the impact will be partially offset by a lower corporation tax rate. Says food retailers will materially outperform in general retail spaces due to guaranteed footfall. Says the VAT rise is no shock, causing a spike in costs for retailers at the year end, and the continued exemption on food and children's clothes will be welcomed. Says passing on charges to consumers is unavoidable. DSG +4.8% at 29p, M&S +3.2% at 354p, Next +2.8% at 2201p, Tesco +1.9% at 396p. Sainsbury +0.5% at 331p. (simon.zekaria@dowjones.com) 1302 GMT [Dow Jones] U.K. Chancellor George Osborne's emergency budget will leave the country's energy industry reeling from a lack of investment, energy consultancy Inenco says. "Reducing corporation tax and the subsequent lowering of capital allowances will have a negative impact on organisations with high capital expenditure, most notably utility companies," says analyst Rebecca Seabury. Sees long-term impact on investment in new power stations and renewable technologies in the U.K. Adds public spending cuts are likely to force local government to scale back low carbon schemes and green projects. (jeffrey.sparshott@dowjones.com) 1248 GMT [Dow Jones] The rise in value-added-tax to 20% from 17.5% from Jan. 4 next year was expected and will burden retailers, Pricewaterhouse Coopers analyst Mike Bailey says. Says the rise to 20% was well-forecasted before the announcement Tuesday. Says retailers will face a burden although the notice period will soften the blow. Says the question for retailers is whether to pass on the extra charges to consumers. Says the rise will affect high-street retailers like Marks & Spencer (MKS.LN) and Next (NXT.LN) as well as non-food supermarkets like Tesco (TSCO.LN) and J Sainsbury (SBRY.LN). Still, shares in the major retailers are higher given there will be no VAT on food or children's clothes. M&S +1.6% at 348p, Next +1.4% at 2173p, Tesco +1% at 391p, Sainsbury +0.2% at 330p. (simon.zekaria@dowjones.com) 0902 GMT [Dow Jones] Investec nudges up Halma (HLMA.LN) price target to 315p from 305p, after the half-year results beat the brokerage's expectations. The group's defensive earnings and rock-solid dividend are enhanced by stronger medium-term growth prospects than at any time previously, says Investec. The full-year dividend of 8.5p is a record, a 7% increase year-on-year and the 31st consecutive increase of 5% or more. Investec says the market has been slow to credit management with the progress made and that the stock remains undervalued. Buy rating. Shares -0.2% at 271p. (andrea.tryphonides@dowjones.com) 0829 GMT [Dow Jones] Arbuthnot keeps a buy rating on Halma (HLMA.LN), says fiscal 2010 revenue of GBP459.1M beat its estimate by GBP4M. Says the weak market conditions seen in industrial safety in the first half are past history. Expects to raise its estimates for the fiscal 2011 by a significant amount. Shares -0.2% at 270.5p. (rachael.gormley@dowjones.com) 0823 GMT [Dow Jones] Numis increases Halma (HLMA.LN) fiscal 2011 pretax profit by 6% to GBP98.3 million and fiscal 2012 pretax profit also by 6% to GBP104.3 million. Says Halma's business model is exposed to less cyclical markets and geared to non-discretionary spend. Also sees plenty of headroom to fund acquisitions after strong cash generation in the fiscal 2010. Keeps add rating and 300p target price. Shares -0.3% at 270p. (rachael.gormley@dowjones.com) 0805 GMT [Dow Jones] Whitbread's (WTB.LN) 1Q update is very strong, with group like-for-like sales up 7.6% for the 13 weeks to June 3. It notes that encouragingly, Premier Inn LFL revenue per available room has increased 9.1% over the period, adding that this is the first positive quarter for 18 months. "We believe the risk to consensus forecasts clearly lies on the upside given the exceptional 1Q." It adds the stock continues to trade at a discount to its hotel peers. Reiterates buy recommendation and 1935p target. Shares +3.5% at 1530p.(michele.maatouk@dowjones.com) 0744 GMT [Dow Jones] Panmure Gordon raises Bunzl (BNZL.LN) price target to 769p from 738p following the company's solid trading update. The update confirms further progress in the company's dominant US operations as it wins further growth from existing customers, sys Panmure. It also notes the favorable impact of cost initiatives on UK & Irish operations taken after a tough '09. It notes the company's strong balance sheet and says it expects Bunzl to take advantage of acquisition opportunities. Keeps the stock at hold. Shares -099% at 740p. (michele.maatouk@dowjones.com) 0702 GMT [Dow Jones] Whitbread (WTB.LN) is firing on all cylinders, says Merrill Lynch, after 1Q sales beat forecasts. "We expect today's announcement to lead to further upgrades of consensus earnings forecasts," it says. "We reiterate our buy rating and 1600p price objective following today's very positive 1Q trading update." Shares closed Monday at 1478p. (michael.carolan@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 22, 2010 11:15 ET (15:15 GMT)