BUZZ-Serco: relief rally

** Outsourcer Serco standout performer on the Stoxx600 and best performing UK midcap in decentvolume after co reaffirms FY guidance

** Welcome boost for co which has reported a string ofprofit downgrades, contract problems & scandals since 2013

** Stock jumps 12%, biggest one-day rise since Feb 2014;shares weak into numbers, down c.17% since an early May peak,with recent analyst revisions having proved negative

** Jefferies says key for co's rehabilitation isreplenishing business development & bid team capability; updatesheds no light on this, but a lack of EPS downgrades likelydriving the rally given share weakness & heavy short interest (RM: tricia.wright1.thomsonreuters.com@reuters.net)

Serco