UK MARKET TALK ROUNDUP: SHARES GAINING

9th Jul 2010 11:28

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] 1028 GMT [Dow Jones] Societe Generale raises AB Foods (ABF.LN) price target to 1046p from 1019p following the company's 3Q update. The statement shows Primark "powering on," and the brokerage raises its current year high-end-of-consensus EBIT forecast for Primark to GBP314M from GBP290M. It says the international expansion potential of Primark is becoming increasingly clear. "Low price and low margins are the key characteristics that should enable Primark to take market share wherever it goes." Keeps the stock at hold. Shares +0.7% at 1002p. ([email protected]) 1016 GMT [Dow Jones] Deutsche Bank raises Burberry Group (BRBY.LN) price target to 775p from 750p. Burberry has already pointed to the positive impact of its 'April Showers' capsule collection, which represented 10-15% of store sales where sold. Deutsche adds that other industry commentary suggests there has been no deceleration in luxury trends and the brokerage thinks the market is anticipating healthy retail sales growth in 1Q. Ahead of Burberry's April-June sales report on July 13, Deutsche looks for total sales of GBP260M, up 13% year-on-year. Maintains buy recommendation. Shares +0.8% 793.5p. ([email protected]) 0829 GMT [Dow Jones] Macquarie Equities Research initiates Kesa Electricals (KESA.LN) at outperform with a 154p target. Says the stock has been oversold and is now trading at a 17% discount to its historical average PER since listing. Reckons the market is attributing a negative value to Comet, over-discounting a profitable business. "We see the largest driver of valuation being Darty France and believe the company is set for a period of margin expansion, given Darty Box and the developing markets are approaching breakeven." Adds Kesa is further supported by a high dividend yield, a strong balance sheet and consistently superior cashflow generation. Shares +1.8% at 129p. ([email protected]) 0815 GMT [Dow Jones] S&P Equity Research upgrades Standard Life (SL.LN) to hold from sell. "Given that the concerns about the sector as a whole have centered on financial factors such as the impact of new solvency regulations and sovereign debt exposures, we now feel the valuation of Standard Life fully reflects the more operational negatives that motivated our sell recommendation." Says while the company has no real capital issue, sovereign debt or other financial issues and has strong cash flow, it remains unhealthily reliant on low margin pension products. Has 189p target. Shares +2% at 191p. ([email protected]) 0722 GMT [Dow Jones] Bank of America Merrill Lynch upgrades William Hill (WMH.LN) to buy from neutral, saying it is a relatively high quality stock at good value. Expects the company to deliver solid EPS growth of 8.6% per annum over '11-'12, with excellent free cash flow generation. Regards continuing strong trends in online and an improvement in machines as key catalysts for the stock in '10. "We believe that William Hill Online is well positioned to deliver strong growth from this year, driven by the UK and Europe." Has 210p target. Shares +2.6% at 180p. ([email protected]) 0713 GMT [Dow Jones] Seymour Pierce upgrades Michael Page International (MPI.LN) to hold from sell and raises target price to 375p as the company returns to more normal levels of business. "But we are still cautious about the medium term outlook for recruitment markets," says the analyst. Will be upgrading full-year gross profit forecast "in due course." Says that Michael Page reported 30% growth in profits, which "is significantly better than expected and compares with an 8% increase at Hays (HAS.LN)." Shares +3.3% at 399p. ([email protected] ) 0707 GMT [Dow Jones] Citigroup upgrades Antofagasta (ANTO.LN) to buy from hold and target to 1200p from 1160p. Says the valuation is too low, and attractive, given the company's commodity exposure and financial strength. Notes Antofagasta has successfully delivered its flagship Esperenza project, which should shift the company into the top 5 global copper producer league by '12. Reckons Antofagasta will generate over $8B of free cash flow over the next three years, meaning that the growth story in the stock is amongst the most robust in the sector. Also notes Citi's commodities team has increased its long-term copper price forecast. Shares +2.5% at 873p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 09, 2010 06:28 ET (10:28 GMT)