MARKET TALK: UBS Raises IMI Price Target

21st Jul 2010 10:37

0937 GMT [Dow Jones] UBS raises IMI (IMI.LN) price target to 800p from 720p, saying it expects 2Q trading to have been strong. Raises '10 EPS estimate to 63p from 60.9p and '11 EPS estimate to 70.8p from 67.4p. "We think investor focus on returns...and free cashflow generation (yield 8%) provides further upside to valuation, while a net cash balance sheet in 2011 is supportive for dividends/buybacks." Notes the stock trades at a 15% discount to the sector and remains a key pick along with Weir (WEIR.LN) and Renishaw (RSW.LN). IMI shares +3.4% at 751p. Keeps at buy. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 21, 2010 05:37 ET (09:37 GMT)