LONDON-Broker Recommendation Round up

Broker tips: Road-builders, BAE, Morgan Sindall

The government has been axing road schemes as it seeks to save money and more cuts are likely to follow, said Charles Stanley, which expects these cuts to have serious implications for road-building firms.

Companies likely to feel the biggest impact include WS Atkins, Mouchel, Scott Wilson and RPS, according to the broker.

Charles Stanley pointed to a letter from the Department of Transport to UK regions, which the broker says ‘in essence warns that their road budgets are going to be cut.’

‘We are sellers of almost all the consultant engineers,’ the broker said.

While noting that defence group BAE faces some disruption from reduced military spending in the US and UK, Charles Stanley expects the firm’s diverse business base and wide geographical reach to serve it well.

Broker Recommendations

Date	Company Name	Ticker	Broker Name	Recommend	Price	Old Target Price	New Target Price	Broker Change
10-Aug-09	Aegis Group	AGS	Panmure Gordon	Buy	91.75p	100.00p	-	Reiteration
10-Aug-09	Aviva	AV.	Deutsche	Buy	376.70p	401.00p	460.00p	Reiteration
10-Aug-09	Aviva	AV.	Morgan Stanley	Equal-weight	376.70p	323.00p	446.00p	Reiteration
10-Aug-09	Balfour Beatty	BBY	Panmure Gordon	Buy	316.10p	380.00p	-	Reiteration
10-Aug-09	Computacenter	CCC	Panmure Gordon	Buy	256.60p	-	-	Reiteration
10-Aug-09	Lloyds Banking Group	LLOY	Royal Bank of Scotland	Hold	97.71p	-	-	Reiteration
10-Aug-09	Logica	LOG	Citigroup	Hold	113.30p	-	-	Upgrade
10-Aug-09	Misys	MSY	Panmure Gordon	Hold	188.70p	167.00p	-	Reiteration
10-Aug-09	Prudential	PRU	Societe Generale	Buy	481.80p	-	-	Reiteration
10-Aug-09	Reckitt Benckiser Group	RB.	Goldman Sachs	Neutral	2,743.00p	3,131.00p	3,225.00p	Reiteration
10-Aug-09	RSA Insurance Group	RSA	Morgan Stanley	Equal-weight	127.00p	181.00p	166.00p	Reiteration
10-Aug-09	Schroders	SDR	CSFB	Neutral	988.00p	820.00p	1,020.00p	Reiteration
10-Aug-09	Schroders	SDR	Citigroup	Buy	988.00p	940.00p	1,115.00p	Reiteration
10-Aug-09	Unilever	ULVR	Citigroup	Buy	1,583.00p	1,900.00p	-	Reiteration
10-Aug-09	Whitbread	WTB	Deutsche	Buy	975.50p	1,305.00p	1,340.00p	Reiteration

Other Company Recommendations Today

Alterian, Anite Group, Archipelago Resources, Autonomy Corporation, Aveva Group, Cairn Energy, Catlin Group, Dana Petroleum, F&C Asset Management, Fidessa, Friends Provident Group, Friends Provident Group, Griffin Mining, Harvey Nash Group, Harvey Nash Group, Inmarsat, Innovation Group, Intec Telecom, Interserve, Kofax, Logica, Logica, Logica, Logica, Logica, Morse, Phoenix IT Group, Portmeirion, Sage Group, SIG, Soco International, Travis Perkins, Tullow Oil, Ultra Electronics Holdings, Xaar