BUZZ-Serco: relief rally
** Outsourcer Serco standout performer on the Stoxx 600 and best performing UK midcap in decent volume after co reaffirms FY guidance
** Welcome boost for co which has reported a string of profit downgrades, contract problems & scandals since 2013
** Stock jumps 12%, biggest one-day rise since Feb 2014; shares weak into numbers, down c.17% since an early May peak, with recent analyst revisions having proved negative
** Jefferies says key for co's rehabilitation is replenishing business development & bid team capability; update sheds no light on this, but a lack of EPS downgrades likely driving the rally given share weakness & heavy short interest (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)