Morning all.

Shares in Northern Rock PLC will be eyed in open deals after the mortgage bank released an in-line trading update, though failed to update the market on margins, said traders.
Northern Rock said trading in the first quarter of 2005 had been in line with its long-term targets of achieving annual asset growth of 20 pct and pretax profit growth of 15 pct.
As a result, Northern Rock said it was "comfortable" with the current consensus forecast, which calls for a 2005 pretax profits of around 475 mln stg.
Panmure Gordon reiterated its 'buy' rating on Northern Rock, noting the trading statement looks strong.
The broker highlighted that the group's residential lending pipeline is flat year-on-year at 4.5 bln stg, which is solid given that the industry as a whole is down.
There is no news on margins however, noted Panmure, adding it expects these to be lower.
CSFB recently downgraded Northern Rock to 'underperform' on concerns that mortgage and consumer credit volumes are slowing, which could affect margins.
Traders pointed out Northern Rock's share price was strong on both Thursday and Friday of last week, so they expect to see it trade down around 0.5 pct at the open.

Morning all.

CENTRICA UPPED TO 'BUY' FROM 'ADD' BY ABN AMRO, TARGET 270 PENCE

UK and European brokers' recommendations issued today, as collated by AFX News from a range of market sources.


GOLDMAN SACHS
Europe Oil & Gas: Ups sector stance to Neutral from cautious; raises Brent crude estimates, ups fair values by 10 pct; Upgrade In-line from underperform Statoil; Downgrade Underperform from in-line Royal Dutch; Downgrade Underperform from in-line Shell

UBS
Downgrade Neutral from buy Chrysalis, cuts target to 188 pence from 212 -- Upgrade Neutral from reduce Viridian, ups target to 725 pence from 680 -- Upgrade Buy from hold Actelion, target 145 sfr, valuation grounds -- Downgrade Neutral from buy Taylor Woodrow, ups target to 340 pence from 330, raises estimates -- Upgrade Buy from neutral Swedbank, ups target to 200 skr from 180 -- Reiterate Reduce Arriva, cuts target to 500 pence from 515

CITIGROUP SMITH BARNEY
Downgrade Hold from buy Finmeccanica, ups target to 0.78 eur from 0.75 -- Upgrade Hold from sell Fortum, cuts target to 11.5 eur from 13.5 -- Reiterate Buy Continental, ups target to 75 eur from 55, raises estimates

JP MORGAN
Upgrade Overweight from neutral Smith & Nephew, unchanged target 583 pence

ABN AMRO
Upgrade Buy from add Centrica, target 270 pence -- Downgrade Sell from buy Renold, cuts target to 50 eur from 85

BRIDGEWELL SECURITIES
Downgrade Neutral from overweight Cosalt, cuts estimates

INVESTEC
Oil & Gas review: Raises Brent crude forecast by 25 pct for 2005 to 45.5 usd a barrel, ups 2006 by 23 pct to 40 usd, and 2007 by 17 pct to 35 usd; Upgrade to Buy Burren Energy, ups NAV estimates by 16 pct to 543 pence; Reiterate Buy JKX Oil & Gas, ups NAV estimate by 22 pct to 146 pence

SG SECURITIES
Upgrade Buy from hold Inditex, ups fair value by 14 pct to 25.1, raises estimates -- Reiterate Buy Continental, ups fair value to 75 eur from 65

ING
Upgrade Buy from hold Capitalia

SEYMOUR PIERCE
Initiate Buy Xansa

MORGAN STANLEY
European & Global Model Portfolios: Add Schroders (Overweight) -- Reiterate Overweight Slough Estates, cuts target to 550 pence from 620, reduces estimates -- Overweight TPG, ups target to 25 eur from 23 -- Equal-weight Victrex, ups target to 430 pence from 420, raises estimates

LEHMAN
European Recommended Portfolio: Remove Santander; increase weightings in RBoS

CSFB
Reiterate Outperform ABB, ups target to 9.0 eur from 7.7

DEUTSCHE BANK
Reiterate Buy FKI, cuts target to 135 pence from 145 -- Hold Scottish & Southern Energy, ups target to 800 pence from 625 -- Hold RHI, ups target to 24 eur from 18 -- Hold Tele Atlas, ups target to 14.5 eur from 8.6

CA CHEUVREUX
Reiterate Outperform Assystem Brime, ups target to 25 eur from 23 -- Outperform Manitou, ups target to 35 eur from 32, raises estimates

EXANE BNP PARIBAS
Reiterate Underperform San Paolo IMI, ups target to 11.0 eur from 10.2 -- Outperform Assytem Brime, ups target to 21.0 eur from 18.8

PANMURE GORDON
Reiterate Buy Barclays, ups target to 625 pence from 590