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Brewin Dolphin downgrades Morson Group from buy to hold, target price cut from 125p to 77p

ING downgrades Marks & Spencer from hold to sell, target price cut from 330p to 274p.

Merrill Lynch initiates underperform on Paragon Group of Companies, target price 170p.

Peel Hunt initiates buy on Kier Group, target price 1819p

Some coverage In an operational update for the quarter ended 30th November, Vatukoula Gold Mines* (VGM) reported its 100% owned gold mine in Fiji achieved production of 15,684 ounces of gold over the period, 14,588 ounces of which was sold. At an average selling price of 1,684 dollars an ounce, the mine was able to generate a profit of 1.7 million pounds for the quarter, which compares to a 200,000 pound profit in the previous comparable. The company has a long term production target rate of 100,000 ounces per annum, and with this in mind, WH Securities is confident Vatukoula can return to historic levels of profitability. The brokers holds a "buy" recommendation and 122p price target on the shares. The shares closed 2.25p lower at 65.75p.

kline - howdy - not long in from work and reading the news all round - I have to say the RNS was rather negative in many aspects however trading performance is still thought to be coming in at the lower end of expectations which is probably the result of much hard work. Buying at this level in the longrun must surely have benefits ( how long is the issue) - as for the short term well thats just a lottery just now - it may drop a bit yet but if it was me I would be buying from here down and holding long - I am not in yet - may dip a toe tomorrow but Im working 0600 onwards so may not much of a chance to follow this live. GL

Personnel contractor Morson Group (MRN) announced ahead of final results for the year ended 31st December that trading performance for the period was likely to be at the lower end of estimates and that net debt levels would be higher than previously anticipated. The company admitted that while not all sectors that it trades within have been affected, global uncertainty has made the outlook for 2012 unclear. With future working capital requirements likely to rise over the coming year, due to overseas expansion and higher than foreseen debt, the company decided it would not be paying a final dividend in 2011. The shares collapsed 24p to 48.5p.

Shares in technology group Logica (LOG) crashed 11.95p to 62.1p, on news that it plans to accelerate its restructuring programme by cutting 1,300 jobs this year, instead of over the next two years. This is expected to incur 80 million pounds in costs, with a further 13 million pounds relating to property expenses. The decision comes in response to forecasts that suggest European GDP will fall 2% in 2012, compared to the previously expected 1%. The effects of the restructuring will primarily be felt in the Benelux region, which the group hopes to return to profitability in 2012, as well as Sweden and the UK.

In-line with its strategy of developing its services in emerging markets, WPP (WPP) has bought a majority stake in Singaporean public relations group XPR for an undisclosed amount. The target reported revenues of 1.4 million Singapore dollars (0.7 million pounds) in the year ended 31st December 2010, on gross assets of 600,000 Singapore dollars (296,502 pounds) and services Singapore, Malaysia and Indonesia. WPP shares descended 17.5p to 638p

Seymour Pierce reiterated its "buy" recommendation for Berendsen (BRSN), with a 545p target price. The textile maintenance company is launching a new strategy, organising itself on business lines instead of the previous geographic system, which the broker believes will increase efficiency and allowing management to focus on growth operations. Seymour also suggest that it could lead to the sale of its low growth activities, generating funds for expansion. Berendsen shares slipped 11p to 414p.

http://www.investegate.co.uk/Article.aspx?id=201112130730128163T

Private & Commercial (PCF) retained its "buy" rating from Daniel Stewart, with an increased target price of 12p, from 10p. The broker notes that the finance house achieved interim pre-tax profits of 242,000 pounds, well ahead of last year's 150,000 pounds despite an 8.5% contraction in revenues to 26.9 million pounds. Daniel Stewart approves of the acquisition of a 6 million pound motor finance loan book in July which is proving to be earnings enhancing, but warns that organic growth has been challenging as businesses are less willing to take on additional debt. The shares were unchanged at 7.375p

Bodycote (BOY) kept its "buy" rating from Panmure Gordon, with a 440p target price. The broker notes that the heat treatment and metal joiner's shares have fallen into a deep discount, leaving it open for a takeover bid. Panmure calculates that even after accounting for a bid premium the company offers compound annual returns of between 16.7% and 23.1%, well ahead of prospects that led to the bid for Charter International (CHTR). Shares in Bodycote dropped 8.6p to 247.3p.

Evolution Securities maintained its "sell" stance on TUI Travel (TT.), believing that investors are harbouring a number of misconceptions about the holiday group, including the believe that it has a put option for its 38.4% stake in container shipping business Hapag-Lloyd. In actual fact, the broker points out that the group is only looking to sell 33.3% of its stake, and believes that it will have to do it at a significant discount to book value. Evolution also rejects the theory that TUI will benefit from the demise of its peer Thomas Cook, and focuses on the weak short and medium-term outlook for the business. The shares fell 3.1p to 149.4p

Sir Frank Chapman, BG Group Chief Executive, said: "BG Group looks forward to working with KMG as a partner in the Karachaganak project, one of the world's largest gas and condensate fields. This agreement represents an excellent outcome for the project partners as well as for the government and people of Kazakhstan". Ashley Almanza, BG Group Executive Vice President, said: "Karachaganak is estimated to have hydrocarbons initially in place of 9 billion barrels of condensate and 48 trillion cubic feet of gas - to date less than 10% of that resource has been produced. Today's agreement ensures strong alignment with the Republic of Kazakhstan and provides the foundation for realising the vast remaining potential and value in Karachaganak".

Agreement reached with Republic of Kazakhstan on Karachaganak BG Group today announced that the Republic of Kazakhstan (RoK) and the contracting companies in the giant Karachaganak gas-condensate field in north-west Kazakhstan have reached an agreement that will support the further development of the field. The agreement, effective from 30 June 2012 on satisfaction of conditions precedent, involves Kazakhstan's KazMunaiGas (KMG) acquiring a 10% interest in the project. This will be done by each of the contracting companies transferring 10% of their rights and interest in the Karachaganak Final Production Sharing Agreement (FPSA) to KMG. The pre-tax consideration under the agreement to the Karachaganak contracting companies is $3 billion dollars. The key elements are: · The contracting companies will receive $1.5 billion cash pre-tax consideration from RoK in exchange for a 5% interest, to be held by KMG, in the FPSA. · The contracting companies will receive a further $1.5 billion pre-tax consideration, comprising $500 million cash and $1 billion non-cash consideration, in exchange for transferring a second 5% interest in the FPSA to KMG. The non-cash consideration includes final and irrevocable settlement of cost recovery and other related claims and the allocation of an additional 2 million tonnes per annum capacity for the Karachaganak project in the Caspian Pipeline Consortium export pipeline. · The contracting companies will be responsible for paying tax of $1 billion on the total consideration. · The contracting companies will make a $1 billion loan to KMG to be repaid in instalments over a three-year period. The loan will be repaid from the proceeds of KMG's share of oil and gas sales from its 10% interest, backed by a guarantee from Samruk-Kazyna, the Kazakhstan sovereign wealth fund.

http://www.investegate.co.uk/Article.aspx?id=201112140700249365T

Meanwhile, Tempus’s Telegraph rival Questor assesses the spread betting firm IG Holdings. With half yearly revenues up 25% against guidance of 23% and a 15% increase in active clients concurrent with an 11% increase in revenue per client the company appears to be going places. August was an intensely volatile month, which attracts spread betters, although clients have calmed down since then. The disappearance of MF Global from the Australian CFD (contracts for difference) market place and a growing geographic spread continue to make IG a buy for Questor.

Galvan Research and Trading has given airline International Consolidated Airlines (IAG) a sell rating, saying that recent forecasts are “now unrealistic”. Last week, the International Air Transport Association (IATA) announced revisions to its industry outlook, downgrading its predictions for 2012. The association now estimates that airline profits for next year will be $3.5bn, compared to previous estimations of $4.9bn, with a net margin of 0.6%. Galvan’s head of research Andrew Gibson said: “As with so many struggling industry sectors, the finger of blame points to the EU crisis, but specifically for IAG, there are growing concerns that the recent positive view projecting a £1bn plus profit for IAG by 2015 now looks unrealistic given the backdrop.” The broker gives a target price of 135p.

Some coverage IDOX, the supplier of document management solutions to the public sector, saw revenues and underlying profits surge ahead in what it described as a transformative year for the company. Revenue in the year to October 31st jumped 23% to £38.6m from £31.3m the year before, reflecting the full year impact of acquisitions made in 2010 and maiden contributions from acquisitions of McLaren Software and LalPac in 2011. The Public Sector software business, which accounted for 68% of group turnover, delivered revenues of £26.1m, up from £24.1m the year before. The proportion of recurring revenues from the Public Sector increased to around 66% from 62% last year. On a like-for-like basis, excluding acquisitions and revenues from the large one-off Scottish executive contract which was completed in 2010, revenues in the Public Sector software business were marginally higher than in 2010. Reported profit before tax climbed to £5.6m from £4.9m the previous year. Adjusted pre-tax profit, which strips out amortisation, exceptional restructuring and corporate finance charges and share option costs, was up 36% to £10.9m from £8.0mthe year before.