UK MARKET TALK ROUNDUP: SHARES GAINING

10th Jun 2010 10:08

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] 0908 GMT [Dow Jones] Panmure Gordon raises Hays (HAS.LN) to hold from sell, following the recent share price weakness and underperformance of late. Sees just 5% downside to its 92p target price, which remains unchanged, offset by an attractive yield of 6%. Still has some concerns and expects Hays to lag some of its peers in terms of profit recovery. However, thinks that given its commitment to maintain the dividend, investors may view it as an "income stock", which may limit downside risk in the short term. Shares are +1.2% at 98p. ([email protected]) 0831 GMT [Dow Jones] Liberum Capital downgrades ARM Holdings (ARM.LN) to sell from hold with a fair value of 190p. "The stock is trading at 36x our 2010 EPS forecast, which we regard as expensive compared to its long term earnings growth outlook of about 12.6% CAGR," Liberum analysts say. They also believe the semiconductor industry has "entered a downcycle which is likely to be a catalyst for multiple compression and earnings downgrades", but notes "ARM remains one of the best long term investments in semis." ARM +5.8% at 290p. ([email protected]) 0700 GMT [Dow Jones] WH Ireland raises Halfords (HFD.LN) target price to 500p from 490p. Says the company's final results are marginally ahead of expectations, with trading since year-end having remained robust. Says the gross margin increased by 230 basis points to 54.4% as a result of sourcing benefits, sales growth in higher margin categories, increased sales of accessories and fitting services as well as a one month contribution from the higher gross margin Autocentres business. Keeps a market perform rating. Shares flat at 500p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 10, 2010 05:08 ET (09:08 GMT)