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Premier Farnell: Deutsche Bank cuts target price from 211p to 200p, while maintaining a buy recommendation.

Invensys: Nomura raises target price from 330p to 370p; buy rating reiterated. Barclays Capital raises target price from 235p to 385p and upgrades to overweight. Deutsche Bank raises target price from 230p to 295p and keeps its hold recommendation. Bank of America upgrades to buy with a target price of 275p. Societe Generale raises target price from 215p to 330p, while keeping a hold recommendation.

Hutchison China Meditech: UBS raises target price from 470p to 520p and reiterates its buy recommendation.

Highland Gold Mining: Westhouse Securities initiates with a target price of 160p and a buy recommendation.

Greencore: Panmure Gordon raises target price from 95p to 100p; buy rating unchanged.

Clarkson: JP Morgan reduces target price from 1450p to 1400p and reiterates an overweight rating.

Cineworld Group: Canaccord Genuity raises target price from 280p to 350p and maintains its buy recommendation.

Chemring Group: Espirito Santo cuts target price from 350p to 320p, while reiterating a buy recommendation.

Bovis Homes Group: HSBC raises target price from 575p to 753p; overweight rating kept.

Berkeley Group: HSBC raises target price from 1560p to 2010p, while maintaining an overweight rating.

Bellway: HSBC raises target price from 950p to 1259p; overweight rating reiterated.

Babcock International: UBS downgrades from buy to neutral.

ASOS: Societe Generale raises target price from 2500p to 2530p and reiterates its hold recommendation.

Aberdeen Asset Management: Morgan Stanley raises target price from 365p to 375p; keeping an overweight rating

Positive Points: CEO Jac Nasser said global energy demand was expected to increase by more than one-third over the next two decades, and China, India and the Middle East were expected to account for 60% of that growth. As confirmed at last month's production report, the majority of the group's projects in execution (20 major projects currently in execution with a combined budget of $22.8 billion) are scheduled to deliver first production before the end of the 2015 financial year. BHP Billiton has approved eight major projects during the 2012 financial year for a total investment commitment of US$7.5 billion. The board has recently placed a greater emphasis on controlling costs. An assessment of more non-core products and operations continues to be made by management. BHP benefits from a uniquely diversified portfolio that reduces its exposure to any one commodity or currency. The company is a potential beneficiary of any broad recovery of the global economy.

Negative Points: BHP will recognise impairments at its US Fayetteville gas asset by US$1.8 billion after tax. The write down was due to a significant drop in gas prices following an unusually warm winter in the US and increased natural gas supply, which together caused an imbalance in the gas market, added the company. Cost pressures for both BHP and the wider industry continue to be seen. Higher fuel and energy prices (of which BHP Billiton is a net beneficiary), together with increased maintenance, labour and contractor expenses continue to provide cost pressures. Natural events such as the recent floods in Australia could impact on production. Currency movements provide potential headwinds. Attempts to substantially expand the company have failed, including a proposed merger with giant rival Rio Tinto. As such, the opportunity to remove significant costs has been lost. Costs in relation to each failed deal, including potential fees to investment bank advisers, have been suffered.

AGM: BHP Billiton registers a strong operational and financial position. At the group's Annual General Meeting held in Sydney, Australia, the company reported that it had achieved a very robust set of financial and operational results, notwithstanding significant volatility in commodity prices, higher capital and operating costs, stronger producer currencies and regulation. Within this environment, the company reported a profit of US$15.4 billion after exceptional items and a net operating cash flow of over US$24 billion. A strong balance sheet enabled it to retain a solid 'A' credit rating, added the group. Discussing the current global economy, Jac Nasser, BHP’s Chairman said “While there are some signs that the global economy is stabilising, uncertainly and government debt continue to be the most pressing challenges". Alluding to the downturn of the European economy and cautious consumers and high unemployment figures in the US, Nasser said "a sharp improvement in economic growth remains unlikely". However, with China still driving much of the world's growth, even though it has slowed to more sustainable rates in recent times, the demand for natural resources is still there. Nevertheless, the world’s largest miner said it was well positioned to reap the benefits of China's longer-term economic growth, with copper, energy products and potash fertiliser all expected to flourish.

Company overview The Group's principal activities are exploring for, developing, producing and processing minerals, oil and gas. The Group's operations are divided into nine business divisions. Base Metals focuses on copper, silver, zinc, lead, uranium and copper by-products including gold. Petroleum focuses on hydrocarbons covering oil, gas and liquefied natural gas. Aluminium relates to bauxite, processing and marketing of aluminium and alumina. Iron Ore focuses its mining activities in the areas of Western Australia and Brazil. Energy Coal focuses on energy coal for use in electricity generation. Metallurgical Coal operates three underground coal mines in Australia. Manganese focuses on alloys, ores and metals. Stainless Steel focuses on nickel minerals which are used in the production of stainless steel. Diamond and Specialty Products operates a diamond mine in Canada and an integrated titanium smelter/mineral sand mines in South Africa. The group employs around 41,000 people working in over 100 operations in 25 countries.

Positive Points: Management noted that "we are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity." Rio Tinto is now targeting cumulative savings of more than US$5 billion of operating and support costs by the end of 2014. Management continues place a high priority on productivity improvements at its operations. It is implementing a programme to improve the efficiency and effectiveness of its support and service functions across the business. Trucks with no drivers have been introduced at some operations. Unmanned trains, X-ray sorting machines and boring technology are all being assessed. Plans to run fully automated trains across its 1,500 km (930 mile) iron-ore rail network in northwest Australia from 2014, to help boost output by 60% by 2015 are being pursued. Rio Tinto will benefit from three major sources of production growth in 2013: Expansion of iron ore production capacity at its Pilbara Western Australia operations, first commercial production from the Oyu Tolgoi copper-gold mine in the first half of the year and the ongoing ramp up of its Yarwun 2 alumina refinery. Group investments remain ongoing. The cash cost of production in the Pilbara, Australia was US$24.50 per tonne in the first half of 2012; the cost per tonne to deliver to China is US$47 per tonne, including royalties, shipping and sustaining capital costs. This is expected to reduce when infrastructure expansions are in place. The board highlighted guarded optimism regarding prospects for China. Management noted that "as China and other emerging economies become more consumption-led, Rio Tinto is set to benefit from mid-to-late-cycle commodities such as titanium dioxide. The business will become a more significant contributor to Rio Tinto earnings from 2013 as long-term contracts expire, increasing exposure to current market prices, which are up to 300% higher than existing contract averages". During the past quarter, Rio Tinto completed the sale of several non-core businesses, including its Specialty Alumina division, the North American portion of its Alcan Cable business and Borax Argentina. Rio Tinto also agreed to sell its interest in the Zululand Anthracite Colliery in South Africa. Currency movements can work in the company's favour. A progressive dividend policy is currently being pursued. An interim dividend equivalent to US 72.5 cents per share was declared, a 34% increase compared with the 2011 interim dividend.

Negative Points: The company is exposed to volatile and potentially substantial swings in commodity prices. Natural events can and have previously impacted production. Accompanying management comments highlighted a volatile outlook, with major uncertainties around future US and European economic growth. The group remains sensitive to global economic health, China in particular. A major proportion of Australian iron ore production is exported to China. Group net debt increased from $8.5 billion at 31 December 2011 to $13.2 billion at 30 June 2012 as strong operating cash inflows were offset by outflows relating to capital expenditure, acquisitions, the increase in the dividend and the share buy-back programme. Adjusted total borrowings at 30 June 2012 were $20.5 billion. Industry-wide cost pressures remain an ongoing concern. In particular, mining hotspots where Rio Tinto maintains significant operations, such as the Pilbara region of Western Australia. The Australian government previously introduced the Minerals Resource Rent Tax (MRRT). The MRRT is a proposed tax on profits generated from the exploitation of non-renewable resources in Australia. It is the replacement for the proposed Resource Super Profit Tax (RSPT).