UK MARKET TALK ROUNDUP: SHARES GAINING

16th Jul 2010 09:53

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] 0853 GMT [Dow Jones] Investec upgrades Reckitt Benckiser Group (RB.LN) to buy from hold. Is surprised by the share price weakness since the 1Q results and says the de-rating presents a buy opportunity for investors. Says Reckitt continues to deliver organic growth in its base business, and its superior cash conversion is being undervalued. Says: "To us this represents a unique and valuable investor proposition that should be prized." Cuts the price target to 3560p from 3600p. Shares are +0.3% at 3262p. ([email protected]) 0831 GMT [Dow Jones] Societe Generale upgrades British Airways (BAY.LN) to buy from hold and lifts the price target to 285p from 220p. The new price target indicates 37% potential upside potential says SG. At its 1Q results on July 30, SG expects the airline to maintain its '11 guidance for break-even pretax profit, despite the negative impact of the strikes on traffic. SG arrows its '11 loss per share estimate to 1.2p from 6.8p, due to a better cost performance. It raises its '12 EPS forecast to 24.8p from 24.2p. Shares +2.4% at 208.5p. ([email protected]) 0800 GMT [Dow Jones] Credit Suisse upgrades London Stock Exchange (LSE.LN) to neutral from underperform, but its cuts price target to 680p from 710p. Says the downside risks in terms of competition in UK cash equities are increasingly discounted in the LSE's share price. Notes the stock is down 10% in the last year, and 70% from its peak. "Moreover the LSE's March 2012E PE multiple of 9x is at the bottom end of the historical valuation range and with no signs of another EPS downgrade cycle." Shares +0.3% at 625p. ([email protected]) 0727 GMT [Dow Jones] Merchant Securities keeps staffing firm Healthcare Locums (HLO.LN) on a buy rating. Says the company's three planned acquisitions of nursing staffing agencies are "equally encouraging" for the future prospects of the group. Reckons the acquisitions will add to bottom-line profits in the first full year. Says it expects earnings to be enhanced by at least 3% in 2011. Keeps a 300p price target. Shares +2% at 164p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 16, 2010 04:53 ET (08:53 GMT)