Vodafone Share News (VOD)

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 1242 GMT [Dow Jones] Standard Life Investments upgrades UK telecoms to heavy from neutral. Says telecom companies have demonstrated resilience in the face of the economic slowdown and as growth resumes, thinks mobile spending in particular has the potential to recover stronger than expected - good news for companies like Vodafone (VOD.LN). Says the regulatory environment appears to have shifted from favoring unbundled providers like Carphone Warehouse (CPW.LN) and British Sky Broadcasting (BSY.LN) towards fixed line operator BT (BT.A.LN). Adds that there is a significant valuation gap between telecoms and other defensives such as food and beverage companies where opportunities for outperformance appear limited. News Corp., which owns Dow Jones & Co., the publisher of this newswire, has a stake of about 39% in BSkyB. (andrea.tryphonides@dowjones.com) 1101 GMT [Dow Jones] KBC Peel Hunt raises Babcock (BAB.LN) price target to 700p from 650p. Reckons the acquisition of VT Group (VTG.LN) brings significant strategic and operational benefits. KBC thinks the guided synergy benefits of GBP50M per annum pretax and GBP8M of financial savings after three years is cautious given the combined cost base and management track record. Adds the stock's valuation represents good value given Babcock's leading positions, strong forward order book and realizable energy savings. Reiterates buy. Shares -1.2% at 628p. (michele.maatouk@dowjones.com) 1048 GMT [Dow Jones] FinnCap downgrades Telecom Plus (TEP.LN) to hold from buy, saying the stock is now priced at a level suitable to warrant dividend payments. Analyst Andrew Darley says shareholder reward remains the time at which Telecom Plus will begin to pay a dividend and with the stock trading at 355 pence, the yield is now appropriate at between 6% and 6.5%. His target price range remains between 350 pence to 380 pence. Shares +1.2% at 350p. (hannah.benjamin@dowjones.com) 1014 GMT [Dow Jones] ICAP (IAP.LN) shares extend losses leading European financial shares lower, after its 1Q trading update failed to give any positive surprises, an analyst says. "The company said fiscal full-year earnings should be in line with current analyst expectations, but a lot of investors were probably hoping for a surprise on the upside," the analyst says. The analyst adds that shares had run up by around 9% in the last three months. Shares -5.5% at 412p.(digby.larner@dowjones.com) 0831 GMT [Dow Jones] UBS cuts Anglo American (AAL.LN) target to 3050p from 3150p as it lowers its estimates for '10 to incorporated actual commodity prices for 2Q '10. Says this has a negative impact on earnings for 1H'10. Cuts '10 EPS estimate by 8% to 403 cents and '11 EPS estimate by 2% to 585 cents. UBS also notes it has lowered its estimate for Anglo's Brazilian iron ore asset Amapa. Keeps at buy. Shares +0.5% at 2427p. (michele.maatouk@dowjones.com) 0814 GMT [Dow Jones] Financial Times's news report on BT Group (BT.A.LN) pensions "may reignite pension concerns," says Liberum Capital analyst Mark James, however "pension deficit payments are readily quantified and we are a long way away from the crown guarantee being needed." Employee pension plan trustees have asked the High Court to rule how much taxpayers would have to underwrite if BT collapsed. The hearing continues. "More relevant is the fact that BT has already agreed with the trustees, in February, a 17-year funding plan to rectify the GBP9B deficit...we would argue that any pronouncement from the regulator is likely to have more of an impact than the Crown Guarantee ruling." Buy rating, 160p target. Stock +0.7% at 144p. (lilly.vitorovich@dowjones.com) 0708 GMT [Dow Jones] Seymour Pierce upgrades JD Wetherspoon (JDW.LN) to hold from sell following the company's trading update. Notes the group has returned to a like-for-like sales growth trend. Says in recent days the stock has risen in anticipation of a positive pre-close statement and the market seems to have been proved right on this. Adds that so far, most pub groups have been reporting positive LFL trading trends in 2Q '10. Notes the shares have fallen from over 540p to closer to 400p. "Long term we are fans of the business model (it has the highest returns of the sector)." Has 450p price target. Shares -1.8% at 430p. (michele.maatouk@dowjones.com) 0700 GMT [Dow Jones] ASOS's (ASC.LN) 1Q trading update is good, but fully factored into the current share price and slightly weaker than the first nine-week trend, says Seymour Pierce. Overall, the UK figures were in line with expectations, while international sales are still tracking ahead of projections, the brokerage says. Retains hold recommendation on the stock but continues to advise investors to take profits at these levels. Notes the stock has had a phenomenal run up by over 60% over the last quarter. Adds that the complexities of developing the business overseas have not been fully factored into the share price. Shares closed Tuesday at 896p. (michele.maatouk@dowjones.com) 0659 GMT [Dow Jones] London Stock Exchange's (LSE.LN) revenues in the company's interim management statement come in above consensus expectations, says Shore Capital, despite a GBP2.3M negative impact from currency effects. Also, total income is reported at GBP166M against a consensus forecast of GBP162.5M and Shore's forecast of GBP160.2M, mainly due to higher than expected net interest income. Shore says these appear to be resilient results and it sees no reason to change its forecasts for the year. Reiterates buy recommendation. Shares closed on Tuesday at 604.5p. (andrea.tryphonides@dowjones.com) 0655 GMT [Dow Jones] JD Wetherspoon's (JDW.LN) trading update is better than expected, says Shore Capital. Like-for-like sales are up 1% in 4Q from 0.8% the previous quarter and ahead of the brokerage's expectations of broadly flat. Shore retains its 2010 pretax profit estimate of GBP71.3M and EPS estimate of 34.9p. "The outlook statement is also encouraging highlighting resilient sales, strong performance from new openings and substantial opportunities to acquire sites." Reiterates buy rating on the stock. Shares closed Tuesday at 438p.(michele.maatouk@dowjones.com) 0655 GMT [Dow Jones] Mitie Group's (MTO.LN) interim management statement confirms trading is in line with expectations says KBC Peel Hunt. The brokerage continues to look for March '11 pretax profit forecast of GBP105.9M and '12 of GBP114.9M. it expects cash generation to remain strong, with March '11 net debt of GBP64.0M, which is well within the facilities of GBP230M to January '12. KBC Peel says the outlook is reasonably robust but notes the public sector uncertainty ahead. The shares look up with events, it adds. Keeps at hold with a 240p price target. Shares closed on Tuesday at 214.9p. (andrea.tryphonides@dowjones.com) 0653 GMT [Dow Jones] ICAP's (IAP.LN) interim management statement confirms the company has had a good start to the year with revenues up 8% and profits up by 5% in the three months to June 30 period, says Shore Capital. It notes however that volumes slowed in June as risk appetite receded. Retains hold recommendation. Shares closed on Tuesday at 436.2p. (andrea.tryphonides@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 14, 2010 08:42 ET (12:42 GMT)