UK MARKET TALK ROUNDUP: BROKERS COMMENTS

19th Jul 2010 07:16

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 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]) 0610 GMT [Dow Jones] Citigroup raises Pearson (PSON.LN) target price to 1100p from 1070p, citing better long-term growth prospects and a cheap valuation. Still, cuts 2011-2012 EPS estimates by around 6%, reflecting the disposal of Interactive Data Corporation. Says M&A is likely to enhance growth/returns. "Encouragingly, Pearson's track record in this area has been strong and our review of potential targets leads us to believe that, all-in, portfolio realignment will be accretive to growth/returns," it says. Keeps a buy rating. Shares closed at 925p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 19, 2010 02:16 ET (06:16 GMT)