UK MARKET TALK ROUNDUP: SHARES GAINING

14th Jul 2010 08:48

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] 0748 GMT [Dow Jones] Arden Partners increases Ashmore Group's (ASHM.LN) price target to 330p from 303p. Broker also revises up 2010 revenue estimates to GBP277m from GBP245m, while increase profit before tax forecasts for the year to GBP197m from GBP171m. It upgrades EPS expectations to 19.8p from 17.2p. Says shares have "derated significantly as the market is calling the end for emerging market credit funds" and so provides investors with an opportunity to buy a "quality business on a value rating with a 5% yield and strong balance sheet." Has buy recommendation. Shares +5.5% at 278p. ([email protected]) 0736 GMT [Dow Jones] Credit Suisse upgrades Shire (SHP.LN) to outperform from neutral and target to 1685p from 1515p. Says in a market where investors are increasingly demanding topline-driven earnings growth, Shire is an attractive option. Across all EU pharma stocks under coverage at Credit Suisse, Shire offers the highest revenue growth on a 3-year time horizon. "With a strong 2Q report expected on August 4 and a number of product-related catalysts due in 2H, we believe Shire warrants PE expansion." Adds the new target price offers 16% upside from current levels. Shares +1.6% at 1487p. ([email protected]) 0717 GMT [Dow Jones] Oriel Financials upgrades Ashmore Group's (ASHM.LN) EPS estimates for fiscal year ending 2010 to 19p from 17.2p after company reported 7% increase in assets under management to $35.3 billion and an increase in performance fees to GBP82.9 million, which was above its own estimate of GBP55 million for the fiscal year. Has a buy recommendation and 320p target. Shares +1.4% at 267p. ([email protected]) 0706 GMT [Dow Jones] Investec initiates coverage of Spirax-Sarco Engineering (SPX.LN) at buy with 1660p price target. Says the business model is robust with a broad spread of end markets, wide geographical exposure and significant product revenue streams. Says: "We believe the group can continue to grow at, or in excess of, previous rates underpinned by the structural growth drivers in the group's end markets, the opportunities for market share gains and the potential of the Watson-Marlow business." Considers it to be a core UK industrials holding. Shares +0.6% at 1576p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 14, 2010 03:48 ET (07:48 GMT)