STOCKS NEWS EUROPE-Genus falls on H1 update

Shares in British animal genetics company Genus (GENS.L) fall nearly 9 percent, hitting a two-month low, after the company says it expects first-half profits at constant currency to be lower than last year, prompting KBC Peel Hunt and Singer to cut their earnings forecasts.

KBC Peel Hunt, which lowers its 2010 estimates by 6 percent, says "EBIT has held up well despite tough markets and tough comps. However, the pace of recovery is likely to be slower than hoped," adding the "shares have slipped back from recent highs and around 600p looks a good entry level."

Singer revises its forecasts to "reflect the difficult first-half and a potentially flat second-half."

Full-year 2010 pretax profit forecast falls to 30.5 million pounds from 33 million pounds, with earnings per share dropping to 33.4 pence from 36.1 pence, Singer says.

"We continue to argue for the start of the turnaround to be seen towards the end of the second-half," the broker adds in a note.

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