MARKET TALK: JPMorgan Ups Drax To Neutral From Underweight

14th Jun 2010 07:40

0640 GMT [Dow Jones] JPMorgan upgrades Drax (DRX.LN) to neutral from underweight and raises price target to 365p from 330p, reflecting the strong upward earnings pressure given the rally in UK gas and electricity prices over the last three months. While JPM is not convinced the rally is sustainable, its magnitude and duration mean it is hard to ignore, the brokerage says. "Provided there is sufficient market liquidity, Drax should be able to take advantage of the rally to increase its forward sales for '11 and '12." Shares closed Friday at 368p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 14, 2010 02:40 ET (06:40 GMT)