UK MARKET TALK ROUNDUP: SHARES GAINING

14th Jun 2010 09:07

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] 0807 GMT [Dow Jones] Royal Bank of Scotland upgrades Pennon Group (PNN.LN) to buy from hold, and raises its price target to 640p from 570p as it takes a look at the UK water sector. Says the company had a good year in '09/'10, with results sharply ahead of expectations. Also notes the dividend policy was ahead of expectations and the Lakeside energy from waste plant is now on line and included in the valuation. Raises Northumbrian Water Group (NWG.LN) price target to 330p from 310p, and keeps at buy following the company's better-than-expected FY results. Pennon shares +1.6% at 547p, and Northumbrian +0.5% at 288p. ([email protected]) 0754 GMT [Dow Jones] UBS upgrades Enterprise Inns (ETI.LN) to neutral from sell. Says the shares became over-valued on the good news of the company's refinancing of its bank facility. "Since the shares have returned to what we would consider to be fair value, we are upgrading the rating," it adds. Has a 110p target price. Says in the long-term, the leased pub model will struggle as per capita beer consumption appears to be in chronic decline, but the FIFA World Cup 2010 "offers an opportunity for substantial increases in beer sales," noting that approximately half of gross profit at Enterprise Inns comes from beer sales. Shares +4.1% at 110p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 14, 2010 04:07 ET (08:07 GMT)