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10:56GMT 17Feb2010-Jarvis slumps on profit warning
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Shares in Jarvis Plc fall as much as 22 percent after the rail network services firm says it expects to post a full-year operating loss below its previous expectations, citing a substantial reduction in work volumes.
KBC Peel Hunt expects continuing difficulty in the company's rail and plant businesses and downgrades its fiscal 2010 adjusted pretax view to a loss of 11 million pounds from a loss of 5.9 million.
But the broker adds: "While 2010 has been a disappointing year for the group, we remain reassured about the 2011 outlook." Though the short-term recovery timing is uncertain, it says, "the patient investor is likely to be rewarded."
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Reuters messaging rm://juhi.arora.reuters.com@reuters.net
10:44GMT 17Feb2010-Electrocomponents up on RBS upgrade
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Shares in Electronic parts supplier Electrocomponents rise 1.8 percent as RBS upgrades its recommendation on the company to "hold" from "sell", ramps its target price up to 185 pence from 116 pence and raises 2011 earnings estimates by 4 percent.
RBS points to the recent upbeat update covering October-January, improving Purchasing Managers' Index indicators and easing comparators, as drivers for its upgrade.
"With forecast momentum turning positive after a prolonged downgrade cycle, we have upgraded our recommendation," the broker says in a note, while cautioning "the exact shape of the economic recovery prevents us being more positive".
"While Electrocomponents is positioned for profit recovery in 2010, and we believe the group strategy is generally sensible, we still have reservations about the group's strategy, specifically in the UK," it adds.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
10:13GMT 17Feb2010-Qinetiq higher as Citigroup upgrades
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Shares in British defence technology firm Qinetiq rise 2.6 percent after Citigroup raises its recommendation on the firm to "buy" from "hold", on valuation grounds.
The broker says Qinetiq's shares have fallen by 35 percent from their November high of 194 pence and consensus 2011 estimated earnings per share has fallen by around 25 percent, as a result of two profit warnings in as many months.
"We do not expect a third warning before the full-year 2010 results on May 27," Citigroup says in a note.
"We estimate that the problem areas account for around one-third of group sales in 2010, with the outlook for the other two-thirds remaining strong."
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:47GMT 17Feb2010-Home Retail up; Investec ups to 'buy'
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Shares in Home Retail gain 3.4 percent to 267.4 pence as Investec upgrades its recommendation on Britain's biggest household goods retailer to "buy" from "hold" on valuation grounds, and raises its earnings forecasts.
The broker says Home Retail's shares have fallen almost 20 percent recently -- the shares hit 325 pence in mid-Nov. 2009 -- whilst yielding almost 4 percent on the final dividend alone.
"Considerable downside trading risk is already being priced into Home Retail's shares," the broker says in a note.
Investec adds that while there are risks from competitors attached to the Argos business, "the Argos customer proposition remains intact" and "the group cash generation is positive".
Peer Kingfisher, Europe's biggest home improvements retailer, also rises 3.4 percent ahead of its fourth-quarter trading update due on Thursday.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:00GMT 17Feb2010-ViaLogy up on oil well technology success
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Shares in ViaLogy Plc rise 8 percent after the provider of sensor technology to oil explorers says an independent analysis validates the role of its QuantumRD product in detecting deposits in a Texas well.
"We maintain our 'buy' recommendation and expect further strong news flow during the first quarter as further wells are drilled," says analyst Seymour Pierce.
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Reuters messaging rm://purwa.naveen.reuters.com@reuters.net
08:50GMT 17Feb2010-Umeco falls after guiding lower on profit
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Shares in Umeco Plc fall 7.4 percent after the British aerospace parts supplier says it expects full-year adjusted pretax profit to be at the lower end of market estimates, as the economic slowdown continues to affect key markets.
KBC Peel Hunt says it believes the low end of the range to be 23.8 million pounds, while its own forecast - to be reviewed - is 25.3 million.
"In light of the continued uncertainty surrounding short-term trading, we maintain our 'sell' recommendation," the broker says.
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Reuters messaging rm://kumar.alagappan.reuters.com@reuters.net
08:22GMT 17Feb2010-UK small caps rise 0.1 pct early
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The FTSE Small Cap index rises 0.1 percent in early trade, underperforming both the blue chips and the midcaps, which gain 0.6 and 0.7 percent respectively.
Thorntons puts on almost 6 percent after the chocolate maker and seller says first-half profit rose by a quarter, with lower sales offset by reduced levels of discounting in the run-up to Christmas.
Jarvis sheds more than 14 percent after the rail network services group says its full-year performance is likely to be below previous management expectations.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
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