Support services and construction group Carillion has dropped nearly 6%, the biggest faller in the FTSE 250, in the wake of a couple of sell notes after Wednesday's trading update.
The company said the eurozone crisis was leading to delays in closing contracts, especially in the UK and middle east. UBS analysts said:
Support services growth prospects which are the main valuation driver have come down from originally "substantial growth" to "growth" and now possibly revenue declines in 2013. Elsewhere, unsustainable construction margins and low cash conversion, due to pension liability and working capital outflows, will likely weigh on the stock. As a result, we downgrade to sell from neutral. We see possible upside risk to our sell rating if material support services contracts materialise in the second half.
Liberum Capital moved from hold to sell, saying:
We are concerned by trading, weak cash generation and the Eaga acquisition.
Carillion is currently down 15.3p at 252.6p.
