UK MARKET TALK ROUNDUP: SHARES GAINING

18th Jun 2010 10:51

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] 0951 GMT [Dow Jones] KBC Peel Hunt initiates coverage of Ashmore Group (ASHM.LN) and BlueBay Asset Management (BBAY.LN), both at buy, with 305p and 440p price targets, respectively. Says looking beyond short-term volatility, the fundamentals for continued allocations to emerging market and European corporates remain sound. Says Ashmore and BlueBay are well positioned to take advantage of this. "Our view is that medium-term demand for the strategies and themes offered by the two companies is likely to remain, and will be supportive of good growth over several years." Ashmore +1.2% at 247p, and BlueBay +4.1% at 297p. ([email protected]) 0933 GMT [Dow Jones] HSBC cuts BP (BP.LN) price target to 500p from 660p. Says the deal announced Thursday gives a possible indication of spill costs and provides some clarity, albeit limited. Brokerage estimates the net present value to be around $30Bln and believes the fall in BP's shares more than discounts this. Reiterates overweight rating on the stock, but adds "a volatility flat." Shares +4.5% at 376p. ([email protected]) 0828 GMT [Dow Jones] KBC Peel Hunt initiates coverage of BlueBay Asset Management (BBAY.LN) with a buy rating and a 440p target price. KBC says BlueBay is an attractive long-term story although it has been hit recently by credit market volatility. The brokerage expects lower inflows in 2011 as the investment-grade products near the company's self-imposed capacity. KBC sees further long-term growth coming from the development of a rates business. It predicts good dividend growth over the next few years. Shares +2.3% at 292p. ([email protected]) 0708 GMT [Dow Jones] KBC Peel Hunt initiates coverage of British Sky Broadcasting (BSY.LN) with a buy rating and 750p target price, following the proposed 700p-per-share bid for the 61% of BSkyB not already owned by News Corporation (NWS). KBC says this will be the first test of the new UK government's media stance, with the two companies, the regulator and the Department of Culture, Media and Sport keen to demonstrate rigor and thoroughness. However "we believe that, ultimately, News Corporation will be successful in its aim of bringing the UK pay-TV group under full control, although the final price may well come in at over 700p per share." News Corp., which owns Dow Jones & Co., the publisher of this newswire, has a stake of about 39% in BSkyB. Shares +0.1% at 700p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 18, 2010 05:51 ET (09:51 GMT)