<strong>BAE SYSTEMS</strong><br />Execution Securities initiated coverage on BAE Systems with a “sell” rating and price target of 290p. The broker believes that concerns about potential programme cuts in the US and UK will continue into 2010 at the least, and that the stock has further potential valuation downside. It prefers BAE rival Cobham.<br /><br /><strong>WOLSELEY</strong><br />Deutsche Bank said that there is “light at the end of the tunnel” for Wolseley, with some key markets bottoming on a mid-cycle basis. It said it believes the stock looks cheap with a return to peak margins and has a “buy” recommendation with a target price of 1,637p. It noted that a lack of recovery in residential markets is a risk.<br /><br /><strong>FUTURE</strong><br />KBC Peel Hunt downgraded Future from “buy” to “hold” following its pre-close trading update. The broker said that the US disruption seen in March continues to reverberate, and that a material loss is now expected as the returns experience “proves more onerous”. KBC has a 20p target price and predicts US losses to continue.