UK MARKET TALK ROUNDUP: BROKERS COMMENTS

17th Jun 2010 07:26

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] 0626 GMT [Dow Jones] Deutsche Bank upgrades Johnson Matthey (JMAT.LN) to buy from hold, and boosts its target price to 1900p from 1550p. Says the company is entering a period of accelerating earnings growth, with 17% growth in earnings in the next three years compared with 7% over the last decade. Says this is driven by tightening emissions legislation driving demand for auto, heavy duty diesel [HDD] and non-road diesel catalysts. "HDD catalysts will also benefit from increased truck production, with Johnson Matthey best placed to benefit with its global market share recently increasing to approximately 65% in this market," it adds. Shares closed at 1572p. ([email protected]) 0624 GMT [Dow Jones] Morgan Stanley lifts Wolseley (WOS.LN) price target to 2050p from 1970p, following the company's 3Q update, which flagged better revenue trends across most regions. "Despite restructuring the cost base, Wolseley still has spare capacity. As such, a small improvement in revenues will result in better margins," says Morgan Stanley. Raises its 2H '10 Ebita margin estimate to 3.8% from 3.4%. Keeps the stock at overweight. Shares closed Wednesday at 1560p. ([email protected]) 0619 GMT [Dow Jones] Nomura upgrades Drax (DRX.LN) to neutral from reduce, and raises its price target to 425p from 350p, on the back of strengthening gas prices and a more attractive valuation. Notes the new target price offers about 10% upside potential, alongside an attractive and secure dividend yield of over 8%. In the near term, expects Drax to continue its recent outperformance of the sector. Shares closed Wednesday at 394p. ([email protected]) 0615 GMT [Dow Jones] Royal Bank of Scotland upgrades Reckitt Benckiser (RB.LN) to buy from hold, and raises its price target to 3600p from 3375p. Notes the continued absence of generic competition for Suboxone as well as more favorable forex rates. Expects 2Q to show continued good progress in the base business in a tough environment. Shares closed Wednesday at 3279p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 17, 2010 02:26 ET (06:26 GMT)