STOCKS NEWS EUROPE-Ladbrokes weak; C.Suisse cuts target
Shares in Ladbrokes (LAD.L) fall 3.1 percent as Credit Suisse reduces its target price for the UK bookmaker to 197 pence from 202 pence, in a review of the sector, reflecting a move to a sum-of-the-parts based valuation.
Credit Suisse says, in a note, it has revised its forecasts for the UK bookmakers to reflect still poor, but albeit slightly better than expected trading, increasing its 2009 EBIT estimates by an average of around 7 percent.
The broker retains its "neutral" ratings on both Ladbrokes and peer William Hill (WMH.L) but of the two, it currently prefers William Hill, principally due to lower regulatory and financial risks.
Ladbrokes raises its target price for William Hill to 200 pence from 193p.
William Hill shares lose 0.8 percent. The bookmaker says that it has paid out a four figure sum to punters who had bet that pop star Michael Jackson, whose death was announced on Friday, would not appear at any of a record-breaking run of concerts at London's O2 arena.
"Many people felt that Michael Jackson was not well enough to apppear at the O2 and we will be paying out to all those people who bet on it," says William Hill's spokesman Rupert Adams in a statement.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
