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Kingfisher: UBS cuts target from 320p to 310p, buy rating kept.

Heritage Oil: RBC Capital Markets upgrades to outperform, target lifted from 200p to 300p.

Dunlem: UBS lifts target from 585p to 650p, buy rating kept.

Craneware: Investec raises target from 390p to 410p, buy rating kept.

Galvan Research and Trading recommends to 'sell' shares of cruise operator Carnival, saying that recent prices cuts are putting pressure on margins. In the wake of the Costa Concordia tragedy in January, Carnival said that it was having to reduce prices. The firm said in June that pre-tax profits in the second quarter were just $14m, compared with $206m the year before, partly due to a $145m adjustment relating to fuel derivatives. "Although Carnival shares and the firm's reputation have rebounded to some degree since the Costa Concordia disaster, the cruise operator has had to cut prices in order to maintain sales. Not only has this had a dramatic impact on profit margins, but with fuel prices continuing to rise there is a real risk the company could slip into a loss," said Galvan's head of research, Andrew Gibson. "For the Galvan Research team, this backdrop means that the shares look vulnerable at current levels. Sell." Gibson says that the stock has delivered "multiple charting failure" at and just above the 2,200p level since the beginning of July. "The current technical picture suggests that while there is no fresh break of 2,200p, there is downside towards the May support zone under 2,000p."

UBS has added Home Retail to its list of top picks in the UK retail sector, a category which has held up well in recent months. "Since our last sector update in February the sector has performed well vs the local market - despite the weather - with disposable income and intake margins recovering in line with our expectations. Although recent increases in petrol prices, utility costs, and possibly food prices may take the edge off the expected recovery in 2013, we think the trend is likely to remain positive," the broker said. Nevertheless UBS said that it's "still early in the cycle" and upcoming results will likely be mixed: good growth is expected from Next and Dunelm but declines are expected at Kingfisher, Home Retail and Marks & Spencer. However, the broker reckons that if Home Retail's Argos brand can produce broadly stable like-for-like sales again in the second quarter, its long-term sale decline will look "more cyclical than structural". "If so, the consensus view that the operating companies have no value (net cash + debtor book = share price) will look misplaced." The broker has upgraded its rating for Home Retail from 'neutral' to 'buy' and lifted its target price for the stock from 90p to 115p. "In-line with our positive stance on the sector we retain 'buy' ratings on Kingfisher, Next and M&S and add Home Retail. Our 'buy' ratings on M&S and Home Retail are generally anti-consensus and would benefit both from a further recovery in the UK consumer as well as their own self-help programmes."

An interim dividend of 0.6p has been recommended, up 20% from 2011.

"Revenue growth across the group has been primarily driven by the 32Red Casino and we continue to work on further enhancing the player experience as well as our marketing effectiveness," he explained. "As previously stated, we intend to enter the Italian online casino market in early Q4 and we are looking forward to commencing marketing and operational activities. While we continue to focus on our core market of the UK, we look forward to utilising our Italian licence to expand the profile of the brand and to grow the business in another regulated market."

Online gaming operator 32Red reported record first half revenues, up fifty per cent from the same time last year as momentum continues into the second half. The casino group said revenue increased to £16.5m for the first half to 30th June from £11m a year earlier. EBITDA before share options and exceptional items increased 12% to £1.7m. Active casino players during the first six months of the year jumped 81% to 31,722. Casino player yield fell to £457 from £543 in the same half in 2011. New Casino players surged 93% to 18,724. The group, which is set to launch its brand in Italy in the second half, said current trading remains strong and in line with management expectations. "Revenues for July and August 2012 are up 22% on the corresponding period in 2011 despite the Olympics taking place at that time. The Board continues its strategy of investing in UK marketing and will commence marketing activity in Italy during the second half of the year," the group explained. CEO Ed Ware added the group's strong performance has continued during the first 2 months of the second half, despite the distraction of the Olympic Games.

Silanis International, which provides e-signature solutions has reported a sharp drop in revenue for the first half. Turnover to the end of June was $3.3m, down from $7.3m in the same period last year. The firm says this reflects a big order in the prior year period. The shares dropped 9% in morning trading.

Theo Fennell, the jewellery seller, has confirmed it is in preliminary talks with private equity player EME Capital. An offer period has now begun and EME has until the close of business on October 3rd to make a formal offer or withdraw. Fennell's share price rose 15% in response to the news.

6 A A A CSF, a provider of data services in South East Asia, said it had received a substantial fee for work on a data centre in the region. The firm said Integrated DC Builders, the developer of the 'CX5' data centre, had paid it 85m Malaysian ringgits (RM) - around £17.2m. The money came from repayment of advances, the payment of a turnkey fee, and for the work CSF carried out. The firm said following the payment its total cash balance was RM102m, about £20.6m, as at 4 September 2012. "We are delighted to have received this substantial payment for our work on CX5, which is one of the most technically advanced data centres in the region," said Adrian Yong, Chief Executive of CSF. "Our teams continue to market CX5 internationally and we continue to see high levels of demand across our core markets."

Theo Fennell, the jeweller beloved of the likes of Victoria Beckham and Elton John, confirmed it is in talks over a possible sale of the company. The company said it was in "very preliminary talks" with private equity firm EME Capital, which may or may not lead to an offer being made. The statement came after rumours of a takeover caused the jeweller's share price to jump by almost a quarter in the last week. The announcement brings the City Code on Takeovers and Mergers into play, meaning EME must, by not later than 5.00 p.m. on 3 October (the 28th day after Wednesday's announcement), either announce a firm intention to make an offer or say it does not intend to do so. Founded in 1982, the British jewellery company designs and produces its own pieces in London and was a contender to be the Queen's jeweller after the post became vacant in July.

Wounds treatment firm Advanced Medical Solutions was in demand after it posted a jump in profits and raised its dividend. Profit before tax was up 72% to £4.5m on revenues that were up 52% to £24.8m in the first half of the year. The firm pushed up its interim dividend to 0.17p per share, an increase of 17.2% on the year before. Chairman, Dr Don Evans, said the first half of 2012 hd seen significant progress by AMS, with its product LiquiBand continuing to increase its market share in the US. "Despite the ongoing effects of the Euro on revenues, as highlighted previously, we expect to meet current market expectations for profit for the full-year," he said." Evans also noted a strong performance by its wound dressing ActivHeal in the UK and an excellent initial contribution from the firm's recent acquisition of German firm Resorba. "The second half is also expected to benefit from stronger silver alginate sales, initial trilaminate foam revenues and an additional boost in the US from LiquiBand Flex," he said. "Further out, we have a number of exciting developments coming through our R&D pipeline which, combined with further strong progress anticipated in our existing businesses, lead the board to be very optimistic about our long term prospects," the Chairman added.

Smart Metering Systems announced its maiden dividend after increased numbers of people using its meters boosted profits in the first half. Pre-tax profits rose by 88% to £2.9m, with earnings per share going up by 46% to 2.6p. Revenue increased by 25% to £9.3m, all of which prompted the firm to announce its maiden dividend of 0.5p. The company, which owns and maintains metering systems and databases on behalf of major energy companies, said its meter portfolio had increased by 25% to 283,275 during the period. The firm highlighted several new contracts won during the period, including one with Scottish and Southern Energy, which adds around 180,000 meters to its portfolio. "SMS has continued to make significant progress against its core objectives, with recent contract wins prospectively adding the equivalent of 430,000 domestic meters," said Chief Executive Alan Foy. "Further new clients, positive progress in the trialling of the group's smart meter technology and new banking arrangements have underpinned the growth of the business," he added.

Marks and Spencer has reshuffled its general merchandise team, poaching Stephanie Chen, director of womenswear at House of Fraser, and elevating M&S director Scott Fyfe to head of menswear. M&S confirmed Ms Chen would become a director, responsible for M&S's homewares and childrenswear, by March 2013. The changes are the first to be made by John Dixon, previously head of food at M&S, who was appointed as executive director of M&S's general merchandise business in July, succeeding Kate Bostock, The Financial Times reports.

Ashtead: UBS ups target from 340p to 375p, buy rating unchanged.

AMEC: Nomura retains buy rating and 1,240p target.

"Whilst the wet UK summer may boost trading for Costa [Coffee], we forecast LFL's up just 3% (vs. +8.4% in Q1), as comps [comparative figures] are 5pp [percentage points] tougher than last year. Our restaurant forecasts decline to +1% vs. +2% in Q1 but the key focus remains on turning gross margin positive (-100bps [one percentage point] forecast for FY13 [full-year 2013]), and we look for an update on the volume vs. price strategy currently in place," Credit Suisse added. Jefferies said Whitbread's trading in the second quarter is likely to have been more volatile, thanks to the timing of the Queen's Diamond Jubilee, the Euro2012 football tournament and the Olympic Games, not to mention the wet weather. It is predicting "flattish" LFL sales.

Hotels and restaurants group Whitbread could not wait till Thursday's pre-close update to announce the poaching of Nicholas Cadbury from Premier Farnell to be its new finance director on Tuesday. Credit Suisse thinks the recently Olympic Games in London will have had a limited but positive impact on revenue per available room (revPAR), the key metric in the hotels business, "given the skewed geographical exposure to softer regional UK RevPAR ... and capped rates on London hotels." On the second quarter (Q2) like-for-like (LFL) sales front, Credit Suisse said: "We forecast flat Q2 LFL's (vs. +4.3% in Q1), implying a potential underperformance relative to weighted UK industry numbers (+1.9%).