MARKET TALK: UBS Upgrades PayPoint To Buy From Neutral

19th Jul 2010 07:16

0616 GMT [Dow Jones] UBS upgrades PayPoint (PAY.LN) to buy from neutral and lifts the price target 410p from 275p after the National Lottery Commission provisionally denied Camelot the permission to branch out into bill payments and mobile top-ups. That would have been a substantial threat to PayPoint and has been a major overhang on its shares. A final decision from the NLC is expected September 3. Meanwhile, PayPoint's valuation is undemanding says UBS, but investors are questioning the diversification of its business model. These concerns are likely to overhang the shares the near-to-medium-term. Shares closed Friday at 350p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 19, 2010 02:16 ET (06:16 GMT)