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Prime Markets in the Press - Braemar Shipping (BMS)

26/10/2010

Shares in Braemar Shipping Services (BRMS.L) fall 0.9 percent as solid first half results from the shipping firm encourage investors to cash in profits following a good run by the stock.

Braemar posts a 3 percent rise in first-half pretax profit to 7.2 million pounds, helped by its shipbroking business, and said growth in Asia was expected to sustain the demand for shipping.

"Braemar Shipping has delivered a very strong performance throughout the first half of 2010, growing every metric and adding a substantial chunk to its cash pile," said Richard Curr, head of dealing at CFD specialists Prime Markets.

"Taking into account the shares are currently up to speed with events (currently just off year highs), Prime Markets believes a period of consolidation is due ... Take profits," Curr adds.

Meanwhile, Arbuthnot Securities trims its rating for Braemar to "buy" from "strong buy" in the wake of the results, reducing its target price to 575 pence from 600, and cutting its current year EPS forecast by 4 percent.

"However, Braemar Shipping Services remains our preferred pick of the shipbroking groups due to its broad spread of activities within shipbroking and its profitable diversification into related maritime services," Arbuthnot adds.

The broker also cuts its ratings for Braemar's peers ACM Shipping (ACMG.L) and Clarkson (CKN.L), both to neutral" from "buy" with unchanged target prices, to reflect recent strong share price performances across the sector.

ACM loses 0.5 percent, and Clarkson falls 0.2 percent.

Reuters

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