LONDON (ShareCast) - Take profits at Rightmove, Westhouse Securities recommended investors on Friday after the recent rally in the stock, downgrading its rating from 'add' to 'neutral'.

While analyst Roddy Davidson was "encouraged" by recent positive trading momentum and Rightmove's confident outlook, he said: "We remain cautious on the sustainability of recent housing market strength and believe competition within the online property market will intensify over the medium-term, capping valuation upside."

Numis Securities has upgraded Henry Boot from 'add' to 'buy' after the housebuilder said on Friday that full-year results would beat forecasts.

The broker said Henry Boot's trading is "positive on all fronts" as pre-tax earnings before interest surged 79% to £14m in the first half. Numis reckons that the 6% year-to-date fall in Henry Boot's shares is out of kilter with the 3% increase seen across the Numis Housebuilders Index.

Broker Liberum Capital says Dutch engineering consultancy Arcadis may have delivered a knockout blow to its Japanese rival in a takeover battle for UK engineering group Hyder Consultancy.

Liberum said the 7% increase in the Arcadis bid over Nippon's offer "may not look convincing". But the broker said the Dutch firm's stake in Hyder, the directors' commitment to sell their shares and concerns about the potential impact of the deal on Nippon's credit rating "limits the prospect of a successful counter".

Credit Suisse still sees substantial upside to shares of Sierra Leone-focused iron ore miner London Mining (LM) but has slashed its target price for the stock by 29% from 140p to 100p and reduced its profit forecasts.

The bank kept an 'outperform' rating, but said that "high interest costs and necessary capex to extend the mine life will keep free cash flows negative for the foreseeable future, resulting in a continual climb in debt levels and financial risk, on our numbers."


BC

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