STOCKS NEWS EUROPE-Prime People falls as H1 profit down 2.9 pct

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10:42GMT 21Nov20088-Prime People falls as H1 profit down 2.9 pct

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Shares in Prime People (PRP.L) fall 9.3 percent as the UK-based real estate recruitment consultancy posts a 2.9 percent drop in pretax profits due to falling demand for property professionals.

Arbuthnot Securities cuts its recommendation to "neutral" from "buy", its target price to 28 pence, from 45 pence, its EPS estimate for 2009 to 6.9 pence from 8.5 pence, and for 2010 to 7.1 pence from 8.6 pence.

"Once we have more visibility and a directional improvement in earnings becomes clearer, the valuation is likely to become significantly more compelling," says Arbuthnot in a note.

"Management's prudent and timely actions in the face of a number of difficult external factors should stand the business in good stead in the medium term," says the broker. For more double click on [ID:nLL242324]

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