MARKET TALK: Goldman Ups Premier Farnell, Electrocomponents

18th Jun 2010 14:22

1322 GMT [Dow Jones] Goldman Sachs upgrades Premier Farnell (PFL.LN) to buy from neutral and Electrocomponents (ECM.LN) to conviction buy from buy. Says revenue growth for both continues to accelerate, driven by a cyclical recovery against easy comparatives and new structural growth. Says both are benefiting from regulatory changes, particularly related to the environment. Also views Asia as an important structural driver. Moreover, says large distributors are benefiting from the environment of fiscal austerity, with stronger balance sheets and superior availability to inventory. Prefers Electrocomponents due to its superior geographical exposure, lower leverage and valuation. Raises price target to 344p from 267p. For Premier Farnell, lifts price target to 333p from 243p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 18, 2010 09:22 ET (13:22 GMT)