SUMM.L Share News (SUMM)

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 0848 GMT [Dow Jones] Singer Capital Markets initiates coverage of Summit Corp. (SUMM.LN) with an 11p price target. The broker says the drug development and research services firm has a promising therapy for Duchenne muscular dystrophy in early-stage clinical trials with BioMarin (BMRN), as well as a raft of experimental medicines called seglins that should attract pharmaceutical industry interest. Analysts Shawn Manning and Elizabeth Klein say an increase in the company's share price will be driven by partnering deals for its three leading seglin compounds, which they expect between 2011 and 2013. Shares flat at 4.5p (jason.douglas@dowjones.com). 0826 GMT [Dow Jones] Citigroup cuts CRH (CRH.DB) target price to EUR22 from EUR24 following the company's interim results. Notes overall the outlook comments pointed to a softening in the pace of recovery rather than a painful double-dip. Cuts '10 EPS estimate to 92 cents from 94 cents and '11 EPS estimate to 122 cents from 142 cents. Still, "we continue to have a buy on CRH based on our preference for US exposure, assumption that a double-dip recession is avoided and a belief that acquisitions will feature more significantly over the next 12-18 months." Shares -0.4% at EUR16.01. (michele.maatouk@dowjones.com) 0708 GMT [Dow Jones] Babcock (BAB.LN) issues a trading update for its first quarter, and business performance appears in line with expectation, says Shore Capital. Adds cash generation continues, the order book remains at GBP8.3B, and the bid pipeline remains 'healthy' according to the management. Says Babcock continues to pay down debt to facilitate the acquisition of VT Group (VTG.LN). Expects some short term challenges from contract and program changes, but sees the combined group becoming a more effective competitor in the market through greater economies of scale. Keeps a buy rating. Shares +0.3% at 621p. (peter.nurse@dowjones.com) 0658 GMT [Dow Jones] HSBC initiates coverage of European business services stocks. Says there has been some considerable volatility in the sector as investors wrestle with recession, the speed of the recovery and the possibility of a relapse in demand. "Through the clamour of much macroeconomic noise, the market has perhaps started to anticipate a mechanical slowing of growth after the early thrills of recovery." Starts Northgate (NTG.LN), Regus (RGU.LN) and Aggreko (AGK.LN) at overweight, with 260p, 110p and 1600p price targets, respectively. Also starts Experian (EXPN.LN), Mears (MER.LN) at overweight with 750p and 310p price targets. Starts Xchanging (XCH.LN), Capita Group (CPI.LN) and Davis Service Group (DVSG.LN) at neutral, with 210p, 800p and 390p price targets, respectively. Also starts Group 4 Securicor (GFS.LN) and Mitie Group (MTO.LN) at neutral, with 295p and 220p price targets. Initiates coverage of Ashtead Group (AHT.LN) at underweight with 75p price target. (michele.maatouk@dowjones.com) 0653 GMT [Dow Jones] Babcock's (BAB.LN) update confirms trading in line with expectations, says KBC Peel Hunt, with the order book stable at GBP8.3B. Says the outlook remains positive, with good cash generation. Notes the focus remains on the VT Group (VTG.LN) acquisition which is due to complete Thursday. Says the stock's valuation is attractive for a high quality outsourcing play, capable of double digit organic growth with long-term income streams. Has the stock at buy with 650p price target. Shares closed Wednesday at 619p. (michele.maatouk@dowjones.com) 0650 GMT [Dow Jones] AB Foods' (ABF.LN) update is good, says Martin Deboo of Investec, though he doesn't expect it to result in FY upgrades. Says positive news on Primark is somewhat offset by the negative comments on Portuguese sugar. Adds Primark same-store sales look to have slowed since the 1H. Even so, "the big picture is that AB Foods is performing well across its divisions." Rates at buy, with 1080p price target. Shares closed Wednesday at 980p. (michael.carolan@dowjones.com) 0647 GMT [Dow Jones] KBC Peel Hunt upgrades Hays (HAS.LN) to hold from sell following the company's in-line 4Q update. Brokerage says the anticipated fall off in the UK public sector work is in KBC's numbers and also in the share price, with the shares off 20% in the last three months. "In the short to medium term we see no catalysts for the stock but we believe the 6.5% yield will underpin the shares." Has a 90p target. Shares closed at 91p Wednesday. (michele.maatouk@dowjones.com) 0636 GMT [Dow Jones] Man Group's (EMG.LN) first-quarter trading update is "in line with expectations," with some positive signs that include lowest level of redemptions in three years from institutional investors, says Oriel Securities analyst Keith Baird. Adds the positive performance of AHL fund against backdrop of falling markets is also a good sign, although the result is still modest. Keeps at hold, with 300p target price. Shares closed Wednesday at 217p. (patricia.kowsmann@dowjones.com) 0632 GMT [Dow Jones] AB Foods (ABF.LN) posts "another good strong update, following the trend of the last nine months," says Shore Capital's Darren Shirley. He's encouraged by Primark, where same-store sales are likely in high single digits, and notes that margins in the division have grown. Adds both sugar and grocery had robust performances, with more margin progress to come in grocery division. Reiterates buy stance. Shares closed Wednesday at 980p. (michael.carolan@dowjones.com) 0625 GMT [Dow Jones] Morgan Stanley upgrades WPP Group (WPP.LN) and UBM (UBM.LN), both to equalweight from underweight. Has a price target of 635p for WPP, and 510p for UBM. Says caution over the economic outlook in Europe means investors are favouring ad agencies with their considerable US and South East Asian exposure. As far as UBM is concerned, the brokerage notes the recent fall in the shares, evidence of solid 2011 exhibition rebookings and the reversion to a 5% yield. WPP closed at 629.5p, and UBM at 502p. (peter.nurse@dowjones.com) 0619 GMT [Dow Jones] Associated British Foods' (ABF.LN) 3Q update is better than expected, says a trader. Notes total group sales are up 14%, versus his expectations for a rise of around 6%. Adds the strong performance in Spain is particularly encouraging. Another trader expects the shares to open up around 2% on the update, after closing Wednesday at 980p. (michele.maatouk@dowjones.com) 0616 GMT [Dow Jones] Morgan Stanley initiates AMEC (AMEC.LN) at equalweight with 1000p target. Says the company's below-average organic growth outlook and uncertainty on cash reinvestment are offset by its solid operational track-record and valuation. However, notes most of Amec's revenues come from mature areas such as the UK and the US, meaning exposure to energy 'hotspots' such as the Middle East, Brazil and West Africa is limited. "But its operations are low risk compared to other oil service companies." Shares closed Wednesday at 847p. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 08, 2010 04:48 ET (08:48 GMT)