UK MARKET TALK ROUNDUP: SHARES GAINING

29th Jul 2010 10:50

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] 0950 GMT [Dow Jones] UBS raises Rotork (ROR.LN) to buy from neutral and lifts target price to 1900p from 1400p. Says this reflects higher than expected order input and the potential upside from the introduction of the CVA range control valve actuator product. Brokerage says long-term growth seems assured, not just from end-market growth but "due to structural drivers such as increased valve automation and the use of electric actuators in process applications, which offers customers economic efficiencies." Shares +6.3% at 1484p. ([email protected]) 0948 GMT [Dow Jones] Barclays Capital downgrades Yell Group (YELL.LN) to equalweight from overweight and cuts the price target to 30p from 55p. Says guidance has disappointed for two quarters in a row and expects revenue recovery to be slower. Based on lower 2H growth and a reduction in growth in FY '12, the brokerage cuts Ebitda by 5% and 11% for FY '11 and FY '12, respectively. Says lower Ebitda means covenant headroom will become an issue again at Yell. Sees few positive catalysts ahead for the shares. Shares are +4.4% at 26p, recovering from their 19% slump on Wednesday. ([email protected]) 0937 GMT [Dow Jones] Exane BNP Paribas upgrades Centrica (CNA.LN) to neutral from underperform and increases the price target by 46% to 350p. Says it is now more confident regarding Centrica's retail margins for the next few years. Should market gas prices remain relatively low as expected, says it will help Centrica to maintain its competitive edge in retail. Says competitors are stuck with expensive oil-linked gas supply contracts and generate much of their electricity from coal, which should enable Centrica to continue offering electricity tariffs below rivals', accelerating its market share gains. Also says the group could win new gas accounts. Shares +0.7% at 306p. ([email protected]) 0746 GMT [Dow Jones] KBC Peel Hunt upgrades Rank Group (RNK.LN) to buy from hold, saying against a tough backdrop Rank has delivered a solid 1H. Says Grosvenor continues to be the star of the show, but Mecca has also shown its first growth in customer visits for a decade. Adds with debt down to GBP133M, the group also has the balance sheet to increase investment in core areas. "In an uncertain market, Rank should continue to outperform," adds KBC. Shares +5% at 115p. ([email protected]) 0723 GMT [Dow Jones] Royal Dutch Shell (RDSB.LN) looks like it has turned a corner after a good set of 2Q results, says Panmure Gordon analyst Peter Hitchens. After a long period of production decline, Shell has now had two successive quarters where output growth exceeded 5%, he says. The completion of the restructuring faster than expected and with greater cost reductions is a feather in the cap of Chief Executive Peter Voser, he says. Shares +0.4% at 1714p. ([email protected]) 0703 GMT [Dow Jones] AstraZeneca (AZN.LN) earnings are a strong set, with FY core EPS guidance raised to $6.35-$6.65 from $6.05-$6.35, says Shore Capital. Adds the company has also increased its share buyback in 2010 to $2B from $1B, "catalysed we believe by a combination of the positive outcome of the Crestor litigation along with the positive ADCom recommendation for Brilinta last night." Has a buy rating. Shares +4% at 3330p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 29, 2010 05:50 ET (09:50 GMT)