UK MARKET TALK ROUNDUP: BROKERS COMMENTS

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 0657 GMT [Dow Jones] Intertek's (ITRK.LN) 1H results are stronger than expected at revenue level, but in line at Ebita level, says analyst. In terms of the outlook, the company now expects organic growth in mid single digits and flat margins. But this is "not enough to push consensus materially higher," the analyst adds. Intertek shares closed at 1577p Friday. (LEV) 0648 GMT [Dow Jones] Senior's (SNR.LN) interim pretax profit is ahead of expectations says a trader. FY adjusted EPS is lifted by 4% to 10.7p notes the trader. The trader sees potential for further upgrades during the 2H and says the shares look attractive particularly as the outlook for civil aerospace continues to improve. Shares closed Friday at 127.5p.(andrea.tryphonides@dowjones.com) 0638 GMT [Dow Jones] Randgold Resources (RRS.LN) will likely open weaker Monday, after lowering its production guidance from its Loulo gold mine says a trader. Says Randgold is expecting Loulo's output for '10 to be within 5% and 10% of its original forecast of 400,000 ounces. Shares closed on Friday at 5730p. (andrea.tryphonides@dowjones.com) 0620 GMT [Dow Jones] Citigroup raises British American Tobacco (BATS.LN) target to 2570p from 2460p after its 1H '10 adjusted EPS beats consensus by 3%. Says the company's 1H results are stronger than expected in all regions apart from Eastern Europe. Lifts '10 EPS forecast to 178.4p from 175.4p and '11 to 195.2p from 191.9p. Says the global slowdown has impacted cigarette volumes much more than the market expected but this has been made up for by very large price increases. Notes that British American is seeing signs of improving volumes, especially in Russia. Maintains buy rating. Shares closed Friday at 2194p. (andrea.tryphonides@dowjones.com) 0615 GMT [Dow Jones] Citigroup nudges up British Airways (BAY.LN) price target to 295p from 280p, based on 100% profitability of its joint-venture with American Airlines going ahead and on updated combined BA/Iberia Lineas Aereas de Espana (IBLA.MC) valuation. Also, following stronger than expected 1Q results, raises '11E operating profit to GBP437M from GBP245M. Lifts '11 EPS forecast to 8.9p from a loss per share of 2.0p, and raises '12 EPS forecast to 27.3p from 22.1p. Keeps BA at buy. Shares closed on Friday at 219.6p. (andrea.tryphonides@dowjones.com) 0600 GMT [Dow Jones] Citigroup upgrades Trinity Mirror (TNI.LN) to hold from sell, following the recent falls in the share price. Also increases its price target to 100p from 90p. Despite stabilizing revenues, Citi does not see a return to top-line momentum in the near future, and says uncertainties remain over sustainable margins. Says, "we see no value in aggressively selling the shares from here, but would equally not be buying either." Meanwhile, strong cost control in 1H drives EPS upgrades. Raises '10 EPS forecast to 26.9p from 21.1p, and '11 to 24.1p from 19.1p. Shares closed on Friday at 106.5p. (andrea.tryphonides@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires August 02, 2010 02:57 ET (06:57 GMT)