UK MARKET TALK ROUNDUP: SHARES GAINING

9th Jun 2010 09:04

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] 0804 GMT [Dow Jones] Investec upgrades Barratt Developments (BDEV.LN) and Persimmon (PSN.LN) to buy from hold, keeping the price targets at 110p and 414p, respectively. Is now a buyer of all the leading house builders. Still has short-term concerns about the market post-election but says they look "downright cheap" now. Notes that the sector has fallen 17% in three months and 23% year-to-date. Says: "Our recommendation is based on long-term investors selectively taking advantage of short-term volatility." Favors Redrow (RDW.LN), Bellway (BWY.LN) and Berkeley (BKG.LN) based on management, geography, product and their track record. Barratt shares are +2.4% at 98p and Persimmon +1% at 363p. ([email protected]) 0746 GMT [Dow Jones] ASOS's (ASC.LN) FY results are broadly in line with market expectations, says Seymour Pierce. Says current trade in the nine week period to June 6, 2010 remains consistent with the previous update. "However, the mix has slightly changed with UK taking greater share of the growth, perhaps due the impact of the volcanic disruption on international sales," says Seymour Pierce. Keeps hold rating, "but would continue to advise investors to take profits at these levels," as shares have risen by over 40% over the last quarter. Shares +5.9% at 670p. ([email protected]) 0729 GMT [Dow Jones] Autonomy (AU.LN) is set to acquire the information governance business of CA Technologies (CA). This buy would strengthen Autonomy's product offering for legal document management, says Execution Noble, but is not expected to have material impact on revenues, profits nor cash flows. Adds this is not the large acquisition anticipated in relation to the GBP500M convertible bond issue in February. Adds Autonomy has committed to a cash conversion target of around 90% for 2010, but a major acquisition this year might make this target challenging to achieve. Has a hold rating. Shares +1.6% at 1797p. ([email protected]) 0715 GMT [Dow Jones] Investec upgrades Misys (MSY.LN) to buy from hold and increases the price target to 300p from 207p after it announces the sale of the majority of its Allscripts shares. Says while this announcement has come six months earlier than the brokerage had expected, it is a "great, value-realising deal". Meanwhile, says there are questions over what is going to happen to the banking rump. Thinks at some point this will be sold. Notes the statement gives no mention of banking trading. Given that May is its year-end, thinks if there was any issue here, we would have heard by now. Shares +25% at 279p. ([email protected]) 0714 GMT [Dow Jones] Tullow Oil's (TLW.LN) Mahogany-5 appraisal well on Ghana's Jubilee oil field has come in as expected, says Panmure Gordon analyst Peter Hitchens. "Given that this did not exceed expectations, we believe that the P50 reserve estimate is unchanged but believe that the range between the P10 and P90 numbers will be tightened," he says. "This demonstrates Tullow has a good understanding of how the reservoir works." Gives buy rating. Shares +1.0% at 1,115p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 09, 2010 04:04 ET (08:04 GMT)