MARKET TALK: Panmure Upgrades Pendragon To Buy

29th Jun 2010 10:29

0929 GMT [Dow Jones] Panmure Gordon upgrades Pendragon (PDG.LN) to buy from hold following a trading update. The statement suggests Pendragon continues to trade in line with expectations and that it should deliver a solid set of 1H results, thus providing good underpinning for full-year forecasts, which are unchanged. "Debt levels will be higher during 1H, but this is expected given increased activity levels, although reducing this remains a key objective," says Panmure. It also cites "25% upside to our unchanged target price of 30p equating to a 2011E P/E of 9.6x and an EV/Ebitda of 3.7x." Shares +1.1% at 24p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 29, 2010 05:29 ET (09:29 GMT)