UK MARKET TALK ROUNDUP: SHARES GAINING

15th Jul 2010 10:36

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] 0936 GMT [Dow Jones] Exane BNP Paribas raises Tate & Lyle (TATE.LN) target price to 550p from 520p. Says this is to reflect a lower discount rate of 8.5% versus 9% previously. Adds that this is driven by a reduction in the US risk-free rate to 3.0% from 3.3% and a small reduction in Tate's Beta to 1.05 from 1.11, "to reflect the future direction of the business away from commodity businesses (as demonstrated by the recent sale of the EU sugar refining operations)." Has an outperform rating. Shares +1.3% at 476p. ([email protected]) 0926 GMT [Dow Jones] Nippon Telegraph & Telephone Corp's (9342.TO) proposed purchase of South African technology services provider Dimension Data Holdings (DDT.LN) for GBP2.1Bln in cash "illustrates the strategic move by one of the world's key voice brands into the convergence market where voice and data meet up, where there is much future growth and where Dimensions Data expertise in data interconnect is very valuable," Panmure Gordon analyst George O'Connor says. "I believe that this is not only as - but more - important than NTT getting a far wider geographic footprint," he adds. On the LSE, Dimension Data shares +20% at 122p, making it the biggest riser on the FTSE 250 index. ([email protected]) 0916 GMT [Dow Jones] Evolution Securities raises Afren (AFR.LN) price target to 140p from 131p following the company's deal to acquire Energy Equity Resources Oil and Gas's residual license interest in OML 115, offshore south-east Nigeria. Says: "We estimate Afren has increased its risked exploration upside potential by around $80-$100M for an outlay that is likely to be no more than $5M." Notes drilling is expected to start in 4Q '10. Keeps the stock at buy. Shares +2.3% at 86p. ([email protected]) 0900 GMT [Dow Jones] Execution Noble keeps buy rating for semiconductor wafer company IQE (IQE.LN). Says IQE's exposure to growth markets and its diversified customer base and operational leverage led to a robust first half. Adds that commentary from key customers remains bullish. Upgrades its 2010 earnings per share forecasts around 19%. Keeps 26p target price. Shares +14% at 22p. ([email protected]) 0841 GMT [Dow Jones] Merchant Securities keeps a buy rating on staffing agency Healthcare Locums (HLO.LN). Reckons a first-half trading update, due soon, will consist largely of good news. Says demand for health and social care locums isn't discretionary. Adds that any shortfall in U.K. locum revenue should be more than offset by the international division. Says shares have weakened significantly since talks over a possible bid for the company were terminated. Keeps a 300p target price. Shares +2.7% at 154p. ([email protected]) 0818 GMT [Dow Jones] SDL's (SDL.LN) acquisition of Language Weaver, a company that makes automatic translation software, is a strategically sound deal in an area that's becoming ever more important, say analysts at Piper Jaffray. Add the $42.5 million it agreed to pay is a reasonable price for a strategic asset. Rates at overweight, with 528p target. Shares +0.8% at 507p. ([email protected]). 0813 GMT [Dow Jones] The FDA's vote in favor of keeping Avandia on the U.S. market is clearly good news for GlaxoSmithKline (GSK.LN), says Evolution Securities. It means they will retain the two additional years of profits and it reduces the scope for additional legal costs. It also reduces the likelihood of the product being removed from the market in other parts of the world, Evo says. However, notes the edge of the good news has been slightly removed in the GBP1.57Bln legal charges they are taking to substantially settle and provision for all outstanding legal cases. Reiterates buy recommendation and 1550p price target on the stock. Shares +0.7% at 1190p. ([email protected]) 0729 GMT [Dow Jones] Altium Securities raises Dimension Data (DDT.LN) price target to 120p from 100p following Nippon Telegraph and Telephone Corp's (NTT) 120p a share offer for the company. Says this is an 18% premium to the current share price. Notes NTT has received irrevocable undertakings from 52% of the existing shareholders. Keeps the stock at hold. Shares +19% at 121p. ([email protected]) 0707 GMT [Dow Jones] Seymour Pierce lifts Domino's Pizza (DOM.LN) target price to 450p from 400p, after 1H results and its like-for-like sales performance came in ahead of expectations. Also raises FY '10 pretax profit forecast to GBP36.6M from GBP34.6M, and EPS to 16.5p from 15.6p. Says "Domino's is a marketing machine. Don't bet against it." Keeps buy rating. Shares +0.2% at 413.5p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 15, 2010 05:36 ET (09:36 GMT)