UK MARKET TALK ROUNDUP: SHARES GAINING

28th Jun 2010 10:32

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] 0932 GMT [Dow Jones] Collins Stewart upgrades Provident Financial (PFG.LN) to hold from sell, with the shares now trading only 6% above the brokerage's 800p target price. Says Provident is a well-managed business, which is fully aware of the tough market conditions facing its customers. Adds the recent budget, uncertainties in the employment market, increasing costs of living and likely welfare cuts are all issues which could negatively impact the company's customers and their ability to repay Provident's loans. Shares +0.9% at 859p. ([email protected]) 0847 GMT [Dow Jones] Panmure Gordon nudges up Fiberweb (FWEB.LN) target to 82p from 79p following the company's encouraging trading update. Notes improving volumes in a number of areas and says markets are beginning to show a gradual recovery. Says profitability is better than expected, despite higher resin prices over the course of 1H. With market growth in Europe returning, Panmure believes any improvement in North American trading could trigger further upgrades as the year progresses. Keeps at buy. Shares +3.2% at 56p. ([email protected]) 0822 GMT [Dow Jones] Citigroup cuts BlueBay Asset Management (BBAY.LN) target to 350p from 450p. Sees some near-time issues ahead. Says euro weakness is negative while assets under management trends will suffer in the near term from limited capacity in the group's strong investment grade funds. Sees a likely pause in new flows elsewhere in the face of volatile markets and also senses fears of profit-taking outflows. But reiterates buy rating. Says as markets stabilize, companies will return to the credit markets to raise new capital. Also continues to see institutional demand for credit investment strategies. Shares +2% at 286.4p. ([email protected]) 0712 GMT [Dow Jones] Nomura upgrades Lloyds Banking Group (LLOY.LN) to buy from reduce and lifts the target to 80p from 53p. Says Lloyds is particularly geared to domestic margin expansion owing to the repricing of mortgage asset yields and short-term wholesale funding. Cuts Barclays (BARC.LN) to neutral from buy and target to 300p from 425p. Says the group's profits are respectable but the valuation is likely to remain capped by the business mix and associated regulatory risk. Also cuts HSBC (HSBA.LN) to neutral from buy. Lowers target to 725p from 800p. Sees a lack of revenue momentum over the next few periods. Lloyds +1.4% at 155p, Barclays +1.2% at 285p, HSBC +0.1% at 642p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 28, 2010 05:32 ET (09:32 GMT)