Broker Snaps

Jul 5, 2007

By NO BYLINE

Lloyds TSB 560p +6.5p Broker says BUY

LLOYDS TSB closed higher as Citigroup lifted shares in the bank to "buy" from "hold" and upped its price target to 650p from 600p.

The broker said modest asset growth, tight cost control and more focus on liability-driven business should deliver double digit earnings growth out to 2010.

It also liked the fact that Lloyds had not been caught up in time consuming M&A activity or pursued an aggressive growth strategy in an environment of rising interest rates.

Dimension Data 58.5p -0.25p Broker says BUY

IT SERVICES firm Dimension Data fell despite positive words from Merrill Lynch, which resumed coverage of the shares with "buy" advice and a 70p price target.

It said the company should outperform its peers because of its strong growth profile from emerging markets in Africa and Asia.

The broker added it sees 2008 revenue at around GBP 4.21 billion compared to the current consensus of GBP 4.03bn.

Admiral 959.5p +19p Broker says BUY

INSURANCE group Admiral was up again yesterday after UBS hiked its rating on the shares to "buy" from "hold" with a 1,100p price target.

Admiral shares have tumbled 25 per cent since the start of April, but the Swiss broker said the group was very well positioned for the cyclical upturn in motor insurance rates.

The company confirmed in May it had received a number of approaches for its car insurance search engine Confused.com.

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