STOCKS NEWS EUROPE-Yell Group falls; Goldman cuts to "neutral"
STOCKS NEWS Reuters Results diary
Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]
12:26GMT 25March2009-Yell Group falls; Goldman cuts to "neutral"
----------------------------------------------------------------
Shares in Yell Group (YELL.L) fall 3.7 percent as Goldman Sachs cuts its recommendation on the directories firm to "neutral" from "buy", and slashes its target price to 15 pence from 65 pence, as part of a European media sector review.
Goldman says its global advertising forecast for 2009 falls to -14 percent from -9 percent.
The broker says that, on average for the sector, it reduces 2009 earnings per share estimates by 15 percent, but by over 40 percent for free TV, 8 percent for agencies, and 2 percent for professional publishers.
"Our new forecasts imply more material balance sheet issues for Yell and Informa than previously," says Goldman.
Informa shares (INF.L) are off 4.7 percent.
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
12:21GMT 25March2009-Transics falls after 2008 earnings
-------------------------------------------------------
Shares in Belgian transport logistics company Transics (TRAN.BR) drop 3.4 percent following the release of disappointing earnings.
The stock trades down 3.42 percent at 3.67 euros, hovering just above the all-time low of 3.60 euros it reached on Dec. 2 2008, and nearly 80 percent below its 52-week high of 18.30 euros reached on June 4 2008. The share underperforms the Belgian small cap index .BELS, down about 0.2 percent.
ING analyst Olivier Van Doosselaere says Transics's results prompt him to significantly revise his forecasts downwards, adding the results confirm there is no sign in the industry that points to a recovery in the second half of 2009. Van Doosselaere lowers his target price to 4.1 euros from 8 euros.
"Transics' guidance does not privde any comfort," adds Van Doosselaere, adding he keeps his hold rating for the company, noting "the exceptional growth potential of the company in an economic recovery." Continued...
