UK MARKET TALK ROUNDUP: SHARES GAINING

13th Jul 2010 12:03

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] 1103 GMT [Dow Jones] WestLB upgrades HSBC (HSBA.LN) to neutral from reduce, saying its concerns that the withdrawal of economic stimulus in the US would be too rapid, have now diminished somewhat. WestLB says the economic recovery in the US remains fragile and although it forecasts loan loss provisions will fall in 1H'10 at HSBC, it expects them to rise again in 2H, relative to the previous half. WestLB raises its 2010 EPS estimate to $0.53 from $0.49 and '11 EPS estimate to $0.73 from $0.69, mostly to reflect lower loan provisions, especially within the US consumer finance subsidiary. 600p target. Shares +1.6% at 643p. ([email protected]) 1042 GMT [Dow Jones] Evolution Securities raises Burberry (BRBY.LN) target price to 780p from 740p following the company's 1Q update. Notes reported sales growth of 27% vs Evolution's expectation of 13%. Says this is the result of stronger than expected sales in Europe and Asia Pacific and a 51% rise in the wholesale division. Says: "Although it is early in the financial year, forecasts are likely to move up. They need to in order to justify the premium share price rating." Keeps the stock at neutral. Shares +0.6% at 795p. ([email protected]) 0911 GMT [Dow Jones] BP's (BP.LN) successful installation of a new containment cap on the Macondo well is an obvious positive for the company, says Dolmen Securities. Notes that up until recently it was believed that the eventual solution to the leak would come in the form of a relief well due to be completed in early August. Says: "Closing the well early will result in the reduction of cost estimates for the disaster and will also allow BP investors to look beyond the disaster." Continues to rate the stock at buy with 500p price target. Shares +1.7% at 406p. ([email protected]) 0836 GMT [Dow Jones] Partners Group (PGHN.EB) shares rise after the company lifts guidance for '10 to up to CHF5.5Bln, from CHF4Bln-5Bln previously. "Partners' new view is based on the expectation of strong 2H client demand for certain themes, such as distressed sellers, inflation protection and financing of capital structures," Zuercher Kantonalbank analyst Georg Marti says. Shares +2.4% at CHF139.30. ([email protected]) 0815 GMT [Dow Jones] Societe Generale cuts Barclays (BARC.LN) price target to 395p from 481p. Says at its recent investor meeting, the chief financial officer pointed to a weaker 2Q for BarCap than 1Q, offset by a gain in own debt due to spread widening in 2Q. Says group impairment guidance is maintained despite some deterioration in Spanish real estate values. SocGen takes the opportunity to cut EPS forecasts. Lowers '10 EPS forecast by 12% to 27.3p, '11 by 17% to 38.7p and '12 by 15% to 49.8p. But remains firm buyers of Barclays. Shares +1.0% at 303p. ([email protected]) 0808 GMT [Dow Jones] Panmure Gordon downgrades Cranswick (CWK.LN) to hold from buy, noting the shares have risen around 13% this year. "We continue to believe that the company remains well positioned to deliver further growth but view the shares as fairly valued at current levels." Says the company's 1Q update is in line with expectations, with most of the divisions performing strongly. Has 880p price target on the stock. Shares +0.5% at 864p. ([email protected]) 0805 GMT [Dow Jones] Panmure Gordon upgrades Capita (CPI.LN) to buy from hold and raises price target to 885p from 750p, noting 19% implied upside to its revised price target. "We are fans of Capita and firmly believe its organic growth profile should gather positive momentum in 2011E and 2012E." As such, expects its valuation to move back towards previous historical trends and at current levels reckons the potential rewards more than outweigh the risks. Shares +0.6% at 747p. ([email protected]) 0757 GMT [Dow Jones] Goldman Sachs upgrades British American Tobacco (BATS.LN) to buy from neutral and target to 2840p from 2370p. Within the brokerage's global coverage of tobacco, at 78%, British American has the highest group volume exposure to emerging markets. "Despite accounting for 80% of global cigarette consumption, emerging markets share only 50% of the global category profit pool. As income levels rise across these markets, we expect the global industry profit pool to triple from $63B in 2008 to $183B by 2030." Shares +1.9% at 2261p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 13, 2010 07:03 ET (11:03 GMT)