S&P Futures

BP trading update later today but has announced it has found a new oil feed off Angola.

Thus Group is on track to meet sales growth expectations this year and is set to deliver positive operating profit in the second half of the next financial year.

FirstGroup rail and bus operator expects to meet sales and profit market estimates adding that its finance director was stepping down.

Regus reported positive 2003 earnings of 3.8 million pounds compared with a loss of 22.9 million pounds in the prior year and said trading had continued to improve going into 2004.

Pilkington said its annual operating profit would be around last year's level, in line with its expectations but trading conditions remained challenging, but that it was benefiting from an efficiency drive.

Scottish Power said it was trading in line with expectations, and added it had received 400 million pounds in cash from its hedging strategy.

Ashtead equipment hire fsaid it planned to raise 130 million pounds from a high yield bond offering, as it reported a drop in 9 month profits to 4.5 million pounds against 8.8 million previously

 James Halstead (I), Paramount (I),4imprint (F), AG Barr (F), Alexon Group (F), Chepstow Racecourse (F), Emblaze Ltd (F), Melrose Resources (F), Metal Bulletin (F), MSB (F), Orad Hi-Tec Systems (F), Wellington Holdings (F)

BP Strategy PresentationThus Group (Trading), Scottish Power (Trading)Feb consumer credit, Feb M4 money supply, Q4 produtivity

The US market starts at 3:30pm GMT

This Week

They are not yet on summer time.

Rheinmetall AG Hannover Rueckversicherungs AG Suess Microtec AG

BROKERS THOUGHTS / 22nd 26th March  

Friday, 26 March INVESTEC raised its rating on global miner Anglo American to 'buy' from 'hold', as it upped profit forecasts on all four major London-listed mining groups. The brokerage upgraded commodity price forecasts, leading it to increase forecasts of net* profits, before exceptionals, by 6-20% at Anglo American, BHP Billiton, Rio Tinto and Xstrata. It rated all four stocks as 'buy'. GOLDMAN Sachs raised its rating on business parks operator Slough Estates to 'outperform*' from 'in-line'. Goldman said it was making the move to take advantage of the stock's weakness after Slough's recent earnings release. MERRILL Lynch raised its rating on construction and engineering services firm AMEC to 'buy' from 'neutral' following recent contract awards in Iraq. Merrill said in a note it was also upgrading its operating and pre-tax profit estimates by around 10% in 2004-05. SMITH Barney raised its price target on Brambles Industries, the world's largest pallet supplier, to 'buy' from 'hold', dealers said on Friday. Dealers said Smith Barney had raised its price target on the Sydney and London-listed firm to A$6.40 a share from A$5.43, saying its US-based CHEP business was finally in a position to deliver sustainable profit growth. MORGAN Stanley raised its target on hedge fund Man Group to 1830p a share from 1770p on the back of a strong performance and lower redemptions. LEHMAN Brothers also raised its price target on Man Group, to 2200p a share from 1850p, keeping its 'overweight*' rating on the stock. SMITH Barney cut its rating on health and beauty retailer Boots Group to 'sell' from 'hold' and its target to 625p a share from 700p. Merrill Lynch also cut its target on Boots, to 770p a share from 810p and lowered earnings estimates for 2004-05 and the following year. CSFB raised its target price on Signet, the world's largest jewellery retailer, to 120p a share from 110p, and kept its 'outperform' rating on the stock. The investment bank also raised its pre-tax profit forecast for the current financial year by 5m ($9m) to 220m, and by 5.4m to 240m for the following year.  

Thursday, 25 March SMITH Barney, raised its price target on British housebuilder Barratt Developments to 650p a share from 500p. JP Morgan slashed its 2004 earnings forecasts for British life assurer Legal & General by 29%, saying the company was most exposed to increased life expectancy. In a review of the UK insurance sector after data indicated people may live longer than was previously thought, the investment bank said Legal & General was the most exposed to this risk. The bank also cut earnings estimates for rival Aviva by 7% for this year and for Friends Provident by 9%. It added that Prudential was relatively immune as its Asian business continues to expand quickly. NUMIS raised its rating on Next to 'add' from 'hold', after Britain's third-biggest clothing retailer posted a forecast-beating 17% rise in annual profits. The broker raised its target price on the stock to 1510p a share, from 1350p. NUMIS also raised its rating on Man Group to 'add' from 'hold' after the world's largest listed hedge fund manager* forecast pre-tax profits markedly over market expectations. It raised its price target on the stock to 1800p a share from 1470p. DEUTSCHE Bank raised its target on Xstrata to 'buy' from 'hold' because it said the London-listed miner was well-placed to gain from increased commmodity prices. The bank also raised its price target on the stock to 800p a share from 700p.  

Wednesday, 24 March NUMIS raised its rating on Barratt Developments to 'add' from 'hold' after the housebuilder beat expectations with a 35% rise in first-half profit. Numis also raised its price target on Barratt to 660p per share from 620p. BRIDGEWELL also upgraded its rating on Barratt, to 'neutral' from 'underweight', saying the company had produced a strong set of results across its entire business. CSFB raised its rating on metals and chemicals firm Johnson Matthey to 'outperform' from 'neutral', keeping its 975p a share price target. 'We believe that a confluence of negative factors, and in particular concern at growth prospects in the Pharmaceutical Materials division, has presented a cheap entry point for investors in a stock which, in our view, has the best business model in the sector,' CSFB said in a research note. MORGAN Stanley cut its rating on British American Tobacco to 'equal weight' from 'overweight', as it raised price targets on it and other tobacco stocks. Morgan Stanley raised its price target on BAT, the world's second-biggest cigarette maker, 9% to 930p a share. It said BAT had strong long-term prospects but saw short-term risks from US merger reviews and a potential revial of tobacco lawsuits. The bank said its favoured tobacco stock remained Imperial Tobacco and raised its price target on Imperial by 12% to 1,400p, keeping an 'overweight' rating on the stock. NUMIS raised its price target on Ted Baker to 435p from 415p after the fashion chain had posted a 265% jump in annual profits. Numis also said it had a 'hold' rating on the stock. SMITH Barney cut its price target on banking group HSBC to 750p a share from 775p, and kept its 'sell' rating on the stock. DEUTSCHE Bank raised its rating on the world's second-biggest brewer, SABMiller, to 'hold' from 'sell', and had lifted its price target to 570p a share from 480p. UBS also raised its price target on SABMiller, to 590p a share from 560p, and kept its 'hold' rating on the stock. The bank said it had upgraded its price target after making a 2% increase in earnings-per-share estimates. LEHMAN Brothers raised its rating on life assurer Legal & General to 'overweight' from 'underweight' and increased its price target on the stock to 114p from 102p. HSBC upgraded Britain's fifth-biggest bank Lloyds TSB to 'add' from 'reduce' and also raised its price target on the stock to 460p from 440p. Dealers said HSBC upgraded the stock because capital fears at Lloyds TSB were overdone and the shares were attractively valued.  

Tuesday, 23 March DEUTSCHE Bank cut its rating on music and book retailer HMV Group to 'hold' from 'buy', and raised its price target to 235p from 205p. DEUTSCHE Bank also raised its target price for plumbing and heating equipment supplier Wolseley to 770p from 685p and retained a 'hold' recommendation. INVESTEC raised its rating on department store firm House of Fraser to 'hold' from 'reduce'. Investec said in a note it believed the firm's earnings stream to be improving against a background of lower cost pressures and new store/loyalty initiatives over the next 12 months. GOLDMAN Sachs started coverage of British utility Northumbrian Water Group with an 'in-line' rating. TEATHER & Greenwood raised its rating for accountancy software company Sage Group to 'buy' from 'hold'. Teather added it had a fair value target of 190p. 'The combination of new geographical and vertical markets opened up through acquisition, coupled with the cross-selling, upgrade support revenue potential already present through the installed base, represents an attractive proposition,' Teather said in a research note. UBS upped its rating on Hit Entertainment, the media firm behind children's character Bob the Builder, to 'buy' from 'neutral'. UBS kept its target of 355p. UBS also raised its target on food supplier Northern Foods to 170p from 155p. Traders said the bank had a 'neutral' rating on Northern, which supplies own-label food to retailers such as Marks & Spencer. LEHMAN Brothers raised its price target for caterer Compass Group to 480p from 420p, and had kept its 'overweight' rating on the stock. 'We expect Friday's trading update to be a confident assessment of the group's current prospects: at least 6%organic growth and good margin progress,' Lehman said in a note. UBS raised its rating on 3i to 'buy' from 'neutral' and increased its fair value on the private equity investor group to 685p per share from 655p. MERRILL Lynch downgraded consumer products giant Unilever to 'neutral' from 'buy'.

Monday, 22 March CSFB raised its target price for telecoms equipment maker Marconi to 700p a share from 630p and retained a 'neutral' rating. It also raised its earnings per share* estimates for 2005 and 2006 to 11p and 35p from 6p and 28p respectively. UBS raised its price target for property firm Canary Wharf to 292p a share from 275p, and had kept its 'neutral' rating on the stock. On Friday a Morgan Stanley-led consortium raised its offer for Canary Wharf to 292p per share, trumping an earlier 275p offer by Canadian conglomerate Brascan. The company has recommended shareholders vote in favour. GOLDMAN Sachs raised its stance on Tesco, Britain's biggest grocer, to 'outperform' from 'in-line'. PANMURE Gordon, part of Lazard, raised its rating on waste management firm Shanks to 'buy' from 'hold' and upped its target price to 145p from 125p.