STOCKS NEWS EUROPE-Hunting weak on update; RBS downgrades

Shares in Hunting (HTG.L) shed 3.0 percent following a cautious trading update which prompts RBS to downgrade its rating for the oil services firm to "hold" from "add".

Hunting says overall trading in the first half of 2009 has been satisfactory but adds that should current market conditions, commodity prices prevail then trading this year will be challenging.

RBS says, in a note, that while certain growth regions remain buoyant for Hunting, it is not enough to offset a decline in its core operations.

The broker reduces its EPS estimates for Hunting by 28 percent to 14 pence for 2009 and by 26 percent to 12.4 pence for 2010.

Panmure Gordon reduces its EPS forecasts for Hunting to 16.8 pence from 21.5 pence for 2009, and to 17.7 pence from 19.8 pence for 2010, and cuts its price target to 400 pence from 433 pence while retaining a "buy" stance.

Evolution Securities also reduces its target price for Hunting, to 550 pence from 500, while repeating its "add" rating on the stock.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

rm://david.brett.reuters.com@reuters.net