ING reiterates a “buy” recommendation on Tesco and said this was a fairly lacklustre first trading update, although the market shouldn’t be hugely surprised. ING noted Tesco’s chief executive Terry Leahy expects the first quarter to be a low point for the year and he continues to talk about “recovering global consumer markets.”
UBS keeps a “buy” rating on Carphone Warehouse after Best Buy, which has a European joint venture with the group, reported first quarter results and a small earnings miss. Much of the shortfall was a result of the phasing of costs. But UBS said areas relating to Carphone Warehouse were better than expected.
Royal Bank of Scotland (RBS) said Weir released a strong trading update and proposed a £135m acquisition of a complementary business based in Malaysia. The minerals division continues to trade very well in the second quarter, and RBS raises its full year earnings per share target by 20 per cent and maintains a “buy” rating.
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