UK MARKET TALK ROUNDUP: SHARES GAINING

21st Jul 2010 09:16

Stocks on the rise in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0816 GMT [Dow Jones] Numis Securities expects upgrades to earnings forecasts on Burberry (BRBY.LN) in the coming quarters. The broker says in a note that the company is set for a further profit drive. Adds: "We see little to upset the group's present earnings momentum, particularly with innovation and space growth underpinning progress. A global growth story with clear operational earnings momentum." The broker also says the stock is rightly trading at a premium. Hold rating and 715p target price. Shares +2.5% at 840p. ([email protected]) 0745 GMT [Dow Jones] Credit Suisse cuts Cable & Wireless Worldwide (CW.LN) to neutral from outperform, and target to 85p from 120p. Says CWW's exposure to UK government business appears much more 'discretionary' than anticipated. CWW has yet to formally negotiate with the UK government over any changes to contracts, and whilst its guidance assumes some impact from this, Credit Suisse says there is still downside risk. Cuts '11 EPS to 7.9p from 9.2p, and says the new FY '11 Ebitda forecasts of GBP444M is 2% below guidance. Shares +1.4% at 70p. ([email protected]) 0739 GMT [Dow Jones] HSBC lifts Burberry (BRBY.LN) target to 950p from 900p following the group's GBP70M acquisition of 50 stores from its existing franchise partner in China. "There have been so many positive changes at Burberry in the past years that it looks like the brand has been through a revolution," analyst Erwan Rambourg says. Says the company's sales should outperform the luxury industry and the stock deserves to be trading at a slight premium following years of trading at a discount. Overweight rating. Shares +2.3% at 838p. ([email protected]) 0708 GMT [Dow Jones] The price tag on BP's (BP) sale of assets in North America and Egypt to Apache (APA) is at the top end of expectations, says NCB Stockbrokers analyst Peter Hutton. The $7Bln price equates to $4.50 per barrel of estimated resources, higher than similar deals done by Shell (RDSB.LN) and Total (TOT) at $3.90 and $2.10 per barrel, respectively, he says. "This is speedy action and divests assets which are not really core to BP at an attractive price," he says. Asset sales in Vietnam and Pakistan should raise an extra $1.7Bln, he says. BP shares +1.8% at 394p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 21, 2010 04:16 ET (08:16 GMT)