UK MARKET TALK ROUNDUP: SHARES GAINING

11th Jun 2010 08:16

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] 0716 GMT [Dow Jones] Citigroup cuts Home Retail (HOME.LN) price target to 220p from 290p after a weaker than expected first quarter, particularly at Argos. Given fading household cashflow in 2H and the risk of a more competitive electrical market around peak trading, cuts February '11E pretax profit forecast by 9% to GBP270M. Keeps at hold, reflecting the view that consumer cashflow will deteriorate through '10. Says despite Home Retail's strong cash generation, about 7% dividend yield, and earnings accretion from buybacks, the group's 7x '11E EV/EBIT multiple is unlikely to expand. Shares +0.7% at 230p. ([email protected]) 0704 GMT [Dow Jones] Citigroup raises Halfords (HFD.LN) price target to 630p from 570p after rolling forward the target year and after EPS increases. Says the preliminary results show pretax profit slightly ahead of forecasts, while the company is targeting 15% EPS compound annual growth rate over the medium term. Lifts '10 EPS forecast to 39.4p from 38.6p and '12 to 51.9p from 49.7p. '11 EPS nudges down marginally to 45.9p from 46p. Says Halfords offers a combination of defensive qualities, growth opportunities, a strong balance sheet and a progressive dividend. Keeps at buy. Shares +1.1% at 536p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 11, 2010 03:16 ET (07:16 GMT)