Stocks on the fall in the UK today. Compiled by Dow Jones Newswires Markets Desk, markets.eu@dowjones.com Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com 0959 GMT [Dow Jones] UBS nudges up Northgate (NTG.LN) price target to 200p from 195p. Says the final results show solid improvements in key trends and cash generation is particularly strong. But expects Spanish construction to be significantly weak for a number of years. Expects further deterioration as public construction projects dry up. Says this would lead the Spanish fleet to shrink by 12% in FY '11 and 18% in FY '12, which will have a material impact on longer-term earnings power. Keeps at neutral. Shares -1.9% at 170p. (andrea.tryphonides@dowjones.com) 0849 GMT [Dow Jones] Collins Stewart lowers SThree (STHR.LN) to hold from buy. Reckons the shape the economic recovery will take in Europe and UK is increasingly uncertain. "Although at present there is no evidence to support this, there is the risk that austerity packages and mounting concerns over debt could destabilize candidate confidence and reduce job churn," it says. However, adds the stock yields a very healthy 4.5% at the current share price and brokerage see no risk to the dividend. "We retain our 350p price target but think there will be a more opportune moment to buy the shares," it adds. Shares -2.5% at 246p. (ishaq.siddiqi@dowjones.com) 0834 GMT [Dow Jones] Credit Suisse raises Arriva (ARI.LN) price target to 775p from 700p in order to reflect the price that Deutsche Bahn is making under the terms of its agreed takeover bid. Says the deal is expected to close August 24-26. Says the merger clearance procedure is now underway. Maintains neutral recommendation. Arriva shares -0.1% at 764p. (andrea.tryphonides@dowjones.com) 0819 GMT [Dow Jones] Royal Bank of Scotland lowers Barclays (BARC.LN) target to 410p from 420p to reflect EPS cuts. Cuts '10 EPS forecast by 26% to 24.6p, '11 by 11% to 39.3p. Aside from the cyclical weakness in BarCap and the group's Spanish operations, the forecasts also capture the UK bank levy, lower corporate tax rates and a GBP1B gain on own debt from the wider credit spread in 2Q FY '10. Although the company's disappointing underlying group performance in 2Q '10 overshadowed Wednesday's Global Retail Banking Seminar, the brokerage does not think near-term trends reflect normalized levels. Keeps at buy. Shares -2.5% at 264p. (andrea.tryphonides@dowjones.com) 0816 GMT [Dow Jones] A reverse takeover of Polyus Gold by KazakhGold (KZG.LN) to form a unified company to be called Polyus Gold International will benefit current Polyus (PLZL.RS) minorities, broker UralSib Capital says. The new company's shares on the London Stock Exchange won't have the restrictions limiting how many Russian shares can be used as depositary receipts, previously restricted to 35% for Polyus Gold, UralSib says. Broker points out that local investors in Polyus shares in Moscow "may prefer to exit in the near term due to deterioration in liquidity on the Micex and RTS." Keeps a buy recommendation on Polyus and $70 target. Shares -3.5% at RUB1582.42. (william.mauldin@dowjones.com) 0728 GMT [Dow Jones] UniCredit reduces Lanxess (LXS.XE) price target to EUR41 from EUR43. Says although earnings should be solid in 2010, 2011 should bring with it only a small earnings increase. Notes however weakening growth in Europe wouldn't materially impact earnings - just lead to one year of minor growth. Says in 2010 strong demand in rubbers and semi-crystalline products combined with a strong dollar should allow Lanxess to beat its own guidance. Keeps at buy. Shares -1% at EUR34.46. (april.vanert@dowjones.com) 0717 GMT [Dow Jones] Liberum Capital upgrades Lonmin (LMI.LN) to buy from hold. Says it remains bullish for PGM prices in the medium term due to anticipated growing PGM deficits over the next three years, adding Lonmin has one of the highest operational leverages into rising prices. Also says Xstrata's (XTA.LN) 25% shareholding provides downside protection. Notes Lonmin is the second worst performing FTSE-100 stock year to date. Shares -1.6% at 1388p, in a sharply negative overall market. (peter.nurse@dowjones.com) 0711 GMT [Dow Jones] Diageo (DGE.LN) announces agreement with the UK Diageo Pension Scheme on a 10-year funding plan. However, given that the company states that the impact of the new arrangement and the ongoing negotiations are expected to be cash neutral and for there to be no impact on the net assets of the company, "then we do not expect this announcement to be material for the share price," says Shore Capital. Has a buy rating on the stock. Shares -0.7% at 1052p. (ishaq.siddiqi@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 01, 2010 05:59 ET (09:59 GMT)