UK MARKET TALK ROUNDUP: SHARES GAINING

20th Jul 2010 12:25

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] 1125 GMT [Dow Jones] Bernstein Research raises Burberry (BRBY.LN) target price to 800p from 750p following the company's acquisition of its Chinese retail operations. Says the deal is a brilliant development and has come sooner than expected. It "looks like the coming of age for Burberry as a global mega-brand." Notes emerging markets, and China in particular, are very important in driving luxury goods growth long-term. "Having direct control of Chinese distribution is of the utmost importance and places Burberry among the selected few players that have achieved this." Keeps the stock at market perform. Shares +1.4% at 816p. ([email protected]) 0910 GMT [Dow Jones] Investec Securities lifts its pretax profit forecast on Debenhams (DEB.LN) to GBP167 million from GBP164 million following the group's completion of its debt refinancing on Monday. "We continue to argue that Debenhams' rating is being unfairly penalized as 'leveraged,'" the broker adds. Has buy rating and 92p target price. Shares +1.9% at 58p. ([email protected]) 0856 GMT [Dow Jones] Nomura raises Tomkins (TOMK.LN) price target to 380p from 320p following the company's record trading update. Tomkins's 1H numbers beat consensus by around 40% on EBIT. Even with around 30% increase in the share price Monday, Tomkins remains one of the least expensive sector stocks. In that context, the brokerage reckons Onex Corp's (ONEXF) 325p a share offer for the company is a bit low. Keeps the stock at buy. Shares +1.9% at 300p. ([email protected]) 0703 GMT [Dow Jones] Enterprise Inns' (ETI.LN) trading update is robust, with like-for-like pub profit flat in 3Q over the prior period last year, reflecting the benefit from decent weather during the period and the FIFA World Cup, says Shore Capital. Says LFL pub profits for the year-to-date are down -2% against circa -3% at the 1H stage. "The update is broadly encouraging with a continuation of the improvement seen during the year, albeit somewhat inflated in the quarter," adds Shore. "We retain our 2010 pretax profit estimate of GBP174M and on an EV/Ebitda of 9.3x, we reiterate our sell stance," adds brokerage. Shares +3.5% at 97p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 20, 2010 07:25 ET (11:25 GMT)