UK MARKET TALK ROUNDUP: SHARES GAINING

21st Jul 2010 10:37

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] 0937 GMT [Dow Jones] UBS raises IMI (IMI.LN) price target to 800p from 720p, saying it expects 2Q trading to have been strong. Raises '10 EPS estimate to 63p from 60.9p and '11 EPS estimate to 70.8p from 67.4p. "We think investor focus on returns...and free cashflow generation (yield 8%) provides further upside to valuation, while a net cash balance sheet in 2011 is supportive for dividends/buybacks." Notes the stock trades at a 15% discount to the sector and remains a key pick along with Weir (WEIR.LN) and Renishaw (RSW.LN). IMI shares +3.4% at 751p. Keeps at buy. ([email protected]) 0929 GMT [Dow Jones] Royal Bank of Scotland lifts Premier Oil (PMO.LN) price target to 1700p from 1500p. Says the shares still have further to go, even after the re-rating following the recent Catcher discovery in the North Sea, M&A read-across and a well-received analysts' visit to its Southeast Asia operations. Says: "The shares can continue to re-rate on the back of positive sentiment over the growth profile and near-term drilling." Increases '10 production forecast to 44.0kboep/d (thousand barrels of oil equivalent per day) from 43.4kboep/d, on better than expected performance of the Indonesia and UK assets in 1H '10. Keeps at buy. Shares +3.2% at 1476p. ([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 05:37 ET (09:37 GMT)