UK MARKET TALK ROUNDUP: SHARES GAINING

23rd Jun 2010 09:16

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] 0816 GMT [Dow Jones] UBS raises Hikma Pharmaceuticals (HIK.LN) price target to 770p from 715p to adjust for current FX rates and a slightly higher interest charge than previously anticipated. Notes Hikma has launched oncology injectable products in the Middle East and North Africa, and says this is a significant opportunity, given lower Injectable generic penetration. Adds the company continues to roll out Injectables in Europe, where the underlying business remains stable. Keeps the stock at buy. Shares +0.1% at 692p. ([email protected]) 0756 GMT [Dow Jones] Credit Suisse initiates coverage of Cable & Wireless Worldwide (CW.LN) at outperform with 120p price target. The company is expected to deliver strong earnings and free cashflow growth in the coming years. Credit Suisse says that will be driven by an improving revenue mix, ongoing market share growth and a more benign competitive environment. CS also thinks economic headwinds are reducing and should soon reverse. It adds that UK government spending cuts remain the main risk, but it notes the public sector accounts for just 12% of revenue in '10/'11. The stock looks good value given CS's EPS growth outlook. Shares +0.9% at 92p. ([email protected]) 0750 GMT [Dow Jones] Bank of America Merrill Lynch raises Kesa Electricals (KESA.LN) price target to 135p from 130p following the company's FY'10 results. BofA says all profit and loss lines beat the brokerage's and consensus forecasts. It raises FY'11 EPS estimate to 12.50p from 11.59p and FY'12 EPS estimate to 15.44p from 14.31p to reflect the better profitability across Kesa's European businesses and a lower tax rate going forward. It says Kesa trades in line with the UK general retail sector, but the EPS growth of 27% BofA expects for FY'11 means the stock looks relatively cheap. BofA awaits the strategy update. Neutral rating. Shares +3.5% at 122p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 23, 2010 04:16 ET (08:16 GMT)