Hot small caps: Brewin starts as "hold"
LONDON (Reuters) - The following is a round-up of key small cap movers on the London stock market on Tuesday.
2:22 p.m. - Group weak; Brewin starts as "hold"
Shares in RPS Group (RPS.L) shed 3.6 percent as Brewin Dolphin initiates coverage of the international environmental consultancy with a "hold" rating and 180 pence price target.
The broker says, in its view, RPS will not be immune to the global macro conditions and the cooling economy could temper growth prospects and impact utilisation and margins, which it has reflected in setting below consensus forecasts for the group.
Brewin Dolphin says it sees long-term value in RPS shares but recognises that sentiment is likely to continue to be a key share price driver for the firm over the next 12 months.
1:08 p.m. - Robert Wiseman down, Citi cuts estimates
Shares in Robert Wiseman Dairies (RWD.L) fall 3 percent as Citigroup repeats its "sell" rating, cuts its target price to 285 pence from 310 pence and reduces its estimates, following RWD's downbeat figures on Friday.
Citigroup downgrades its full-year 2008 and 2009 profit forecasts by 26 percent to 22.5 million pounds and 13 percent to 29.3 million pounds respectively.
The broker says RWD's results were in-line with its forecasts but adds there are too many uncertainties surrounding input cost lines to make it comfortable owning the shares.
The sector was dealt a further blow on Monday when Dairy Crest (DCG.L) issued a profit warning.
12:47 p.m. - Babcock International up as H1 profit soars
Shares in Babcock International (BAB.L), the engineering services company, climb 5.6 percent as it reports a 30 percent rise in first-half profits, leading Singer Capital Markets to repeat its "buy" recommendation and 570 pence target price.
Singer says Babcock's interim results are 15-10 percent ahead of its own and consensus forecasts respectively, underpinned by a strong contribution by the Marine division.
The broker says management are being typically prudent and full-year 2009 consensus earning estimates seem likely to edge up by 2-4 percent.
Singer says Babcock's shares currently trade at a discount to peers, which it believes is unwarranted.
12:28 p.m. - Property groups fall on grim retail outlook Continued...
