European Movers: Taylor Wimpey, Danone, Fiat
TAYLOR WIMPEY Down GBP0.25 to GBP0.35... Brokers slash numbers after update - Dresdner cuts to sell from hold. Citigroup lowers target to GBP0.60 from GBP1.0, keeps hold. Panmure double downgrades to sell from buy and lowers target to GBP0.40 vs GBP1.04. Numis slashes target to GBP0.60 from GBP2.48, hold. Co. says major markets experiencing significant downturn, with net reservations down 45%, cancellations up 29%, completions 1/3 lower, order book 33% lower than year ago. Has not been able to raise additional capital. Suspends 2008 interim dividend; to close 13 offices, with loss of around 900 jobs.
MARKS & SPENCER Down GBP0.78 to GBP2.40... 1H sales +1.3%, UK LFL down 5.3% - Announces 1H group sales +1.3%; UK -0.5%: General Merchandise -2.7% (Clothing -3.6%; Home +5.1% ); Food +1.6%. Says UK LFL fell 5.3%: General Merchandise -6.2%; Food -4.5%; International +24.5%. Notes conditions are more challenging. Director of Food Steven Esom is to step down, replaced by John Dixon. Cannot predict the outturn on gross margin. operating costs guidance unchanged. Pali cuts target to GBP2.75 from GBP3.0, retains sell. Panmure cuts to hold from buy, cuts target to GBP2.50 from GBP4.0. Deutsche Bnak lowers target to GBP4 vs GBP6, buy.
ASTRAZENECA (UK) Up GBP1.03 to GBP22.33... UBS lifts target price to GBP22.25 from GBP21.50, retains neutral. Says the generic window on Seroquel is closing. See Brokers Views and News UK A US District Court has granted summary judgment in Co.'s favour in its litigation over Teva's Abbreviated New Drug Application (ANDA) to market its generic version of Co.'s Seroquel tablets. Teva plans to appeal this decision.
INFORMA Up GBP0.49 to GBP4.28... Confirms approach at GBP5.06 per share - Co. confirms it has received a preliminary approach from a private equity consortium led by Providence Equity, at a price of GBP5.06 per share. Deutsche Bank reiterates buy and target price of GBP5.10. Says this preliminary approach now appears materially closer to a deal.
DANONE Down EUR 1.35 to EUR 42.90... Morgan Stanley and Cheuvreux downgrade - Morgan Stanley downgrades to equal-weight from overweight and cuts target by 19% to EUR 50 and EPS by 5% on lack of visibility due to risk of consumer downtrading in Dairy and Water, which is likely to keep the stock range-bound. Thinks the recovery in volume growth in Co.'s Fresh Dairy division, which management indicated in April, will likely be a drawn-out process. Cheuvreux downgrades to underperform from selected list with EUR 41 target. Takes a more cautious stance on growth assumptions with premium to sector at risk near term.
RENAULT Up EUR 0.30 to EUR 51.35... Citigroup upgrades to buy from hold on valuation and confidence in Co.'s prospects for 2009. Cuts target to EUR 66 from EUR 70 and cuts EPS following fresh look at 2009 fx and raw material headwinds ests plus reduced 2008-10 car market forecasts.
MICHELIN Down EUR 0.07 to EUR 45.84... Increases prices in North America - Co. is raising prices as much as 12% in North America on passenger and light trucks replacement tyre in order to offset a rise in raw material costs, energy and transportation costs.
CREDIT AGRICOLE Up EUR 0.10 to EUR 12.47... Raised EUR 5.9bn in rights offer - Co. said that for the remainder of stocks on sale, it received 30% more orders than shares offered.
DEUTSCHE BANK Up EUR 2.04 to EUR 54.48... Says expects to report profitable 2Q - with the results showing no requirement for further capital. The quarterly earnings report is scheduled for release on 31 July.
SOLARWORLD Down EUR 1.78 to EUR 26.93... Talk of share placement weighs.
PFLEIDERER Down EUR 0.38 to EUR 8.13... Will buy back 1m shares until 25 July.
MARIELLA BURANI Up EUR 1.06 to EUR 16.19... Burani family to launch EUR 18/sh takeover offer - Reuters writes that The Burani family aims to launch a takeover offer for Co. at a price of EUR 18 per share to delist the group from the Italian stock exchange.
SEAT Down EUR 0.00 to EUR 0.07... Hires adviser to examine foreign businesses future - Co. has announced to have hired a leading investment bank to examine potential scenarios to enhance the value of some of its foreign operations. Says that with the move Co. aims to focus on the Italian market. Co. also announced the early repayment of EUR 51.75m of senior debt owed to Royal Bank of Scotland.
FIAT Up EUR 0.27 to EUR 10.30... Citigroup cuts target to EUR 15.00 from EUR 21 and lowers earnings following a fresh look at 2009E FX and Raw Material Headwinds, plus reduced 08E - 10E car market forecasts. Keeps buy recommendation. Italian new car registrations slide for the sixth month in a row in June, down 19.5% to 184,275 units. Co.'s fell nearly as much.
AMG ADVANCED MET. Down EUR 3.00 to EUR 50.00... Largest order in Engineering Systems Division's history - One of Co.'s units has landed a supply deal for its solar-grade silicon furnace systems, with a first purchase order valued over US$90m. The contract with a non-disclosed long-term customer is the largest order in the Engineering Systems Division's history. ING says Co. is a growth story riding on three waves.
TELIASONERA Up SEK1.30 to SEK45.80... M. Stanley upgrades Telco Services to Attractive from In-Line as regulatory and technology risks (Sell into Strength, 19 September, 2007) and cyclical exposure (Telecoms and the Economy, 22 January, 2008) appear better priced in given a big decoupling between earnings and share prices (EPS 2008 up 5%, shares down 26%).
NORDEA Up SEK2.60 to SEK84.70... Govt favours big Nordic player - Sweden's financial markets minister says that he favours a Nordic bank, big enough to challenge global players, Dagens Industri reports.
VOLVO Up SEK0.50 to SEK72.50... UBS upgrades to neutral from sell - cutting the B shares target to SEK75 from SEK90.
IBERDROLA RENOVABLES Down EUR 0.23 to EUR 4.53... Bids EUR 175m for C.Rokas - Co. makes an offer for all the shares in Greece's c.Rokas that it does not already own (holds 52.7% currently). Offers EUR 16 per ordinary share and EUR 11 per preference share, a total of EUR 175m.
TELEFONICA Up EUR 0.39 to EUR 17.23... Deutsche Bank initiates with buy and EUR 21.30 target.
UBS Up CHF0.32 to CHF20.62... No fresh capital needed, says Kurer - Co.'s chairman Peter Kurer tells Finanz & Wirtschaft Co. won't need a further capital increase.
SWISSCOM Down CHF2.75 to CHF335.25... Exane downgrades to underperform from neutral and cuts target price to CHF406 from CHF430. Broker says it was too optimistic on Co.'s growth profile and now believes that it could risk disappointing investors on its 2008 and 2009 earnings.