STOCKWATCH BA reiterated 'buy' at Merrill Lynch post results

LONDON (AFX) - Shares in British Airways PLC were reiterated a 'buy' at Merrill Lynch after the national carrier's second quarter figures came in at the top end of expectations, dealers said.
In a note to clients, the broker said operating profit of 240 mln usd compared with its forecast of 203 mln and range of 201-215 mln, boosted by the fuel surcharge and hedging.
Looking to the future, the broker said its current year operating profit forecast of 450 mln "looks unlikely to be altered materially", subject to meeting with managament later today.
Merrill said this is principally because the Q2 out-performance was driven by lower fuel costs than it had expected, due to the timing of hedges at
specific levels, and therefore looks likely to be offset over the
course of the remainder of the financial year.