UK MARKET TALK ROUNDUP: SHARES GAINING

30th Jun 2010 10:35

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] 0935 GMT [Dow Jones] Panmure Gordon raises AstraZeneca (AZN.LN) price target to 3600p from 3300p, saying the company's Crestor patent victory removes a significant overhang. Expects the company to prevail in any likely appeal which will be conducted by a panel of 3 expert intellectual property lawyers. "AstraZeneca remains a conviction buy and we expect the market to start focusing on how the company emerges from its trough year '12 which could result in significant upgrades to consensus." Shares +9.4% at 3224p. ([email protected]) 0921 GMT [Dow Jones] Panmure Gordon raises ASOS (ASC.LN) price target to 875p from 790p "on the basis that we now see a PEG of 1.0x as a fair expectation (previously 0.95x)." Says the new target implies around 3% upside to Tuesday's mid-close and therefore the brokerage downgrades the stock to hold from buy. Continues to see ASOS as a world class player in one of the fastest growing retail subsectors and says this is reflected in share price outperformance relative to the sector. Shares +1.4% at 863p. ([email protected]) 0910 GMT [Dow Jones] Lloyds Banking Group's (LYG) target price raised to 68p from 60p by Credit Suisse on higher medium-term earnings forecast. "We remain concerned about the structural funding issues at Lloyds, but regulatory pressures appear to be easing and the additional cost of raising substantial term wholesale or deposit funding should be more than offset by additional mortgage revenue in the near-term," firm says. Adds tax risk for bank eased by its domestic focus. Keeps at Outperform. Shares +1.1% at 54p. ([email protected]) 0815 GMT [Dow Jones] BP (BP) shares rise more than 6% Wednesday morning, though analysts say there are no specific drivers for the performance so far. "It's a pleasant surprise, but perhaps just a short-term move," says one. Cites Tuesday's speculation on a possible M&A as well as less than worst case impact from a pending storm in the Gulf of Mexico as sources of positive sentiment, but relatively old news. Another notes that shares have shed more than half their value since the Deepwater Horizon disaster; says the magnitude of loss doesn't appear entirely rational and the day's jump may not be either. Shares now +5.5% at 319p. ([email protected]) 0708 GMT [Dow Jones] Premier Foods (PFD.LN) appoints a new chairman, Ronnie Bell - a former executive of Kraft (KFT) Europe and a until today a non-executive director of Northern Foods (NFDS.LN). However, Shore Capital keeps its sell rating, saying its investment thesis remains intact: Premier Foods is over-leveraged and burdened by pension liabilities with an operating platform that is not performing well. Shares +0.7% at 20p. ([email protected]) 0705 GMT [Dow Jones] HMV's (HMV.LN) profits in its final results are in line with expectations says Arden. Says there's no formal comment on current trading but notes the company admits the World Cup has disrupted footfall, as expected. Says HMV management continues to think if it delivers its strategy, profits will follow along with the share price. But Arden says the stock market is sceptical and Arden is disappointed that HMV does not appear to have a 'plan B' to boost its ailing share price with, for example, a share buy back program. But has faith in the company and so maintains buy recommendation. Shares +3.5% at 59p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 30, 2010 05:35 ET (09:35 GMT)