Renishaw Share News (RSW)

Wed, 26th Jan 2011 09:49

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09:10GMT 26Jan2011-Renishaw surges on strong results

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Shares in Renishaw rise over 10 percent after the British engineer reports a five-fold rise in its first-half pretax profit, as demand for its high precision measurement tools soars in China.

'We have upgraded our current year forecast on the back of improving evidence of recovery accelerating, with pretax profit increasing from 55.9 million pounds to 73.6 million pounds,' says analyst David Buxton of Finncap.

Buxton, who raises his rating on the stock to 'buy' from 'hold', says shares deserve to react well to better-than-expected results and a bullish outlook.

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Reuters messaging rm://juhi.arora.reuters.com@reuters.net



09:10GMT 26Jan2011-Vodafone boosted by Verizon read-across

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Shares in Vodafone gain 2.7 percent, among the top gainers in a 1 percent stronger FTSE 100, as traders cite a bullish read-across from figures on Tuesday from the British firm's U.S. wireless joint venture with Verizon.

'Verizon Wireless reported impressive 4Q results yesterday. Aside from the obvious positive read-across to our Vodafone valuation … there were other aspects that caught our eye,' broker Espirito Santo says in a note.

The broker says, for one thing, it thinks that the extremely weak performance of Verizon's Wireline division makes it even more likely that the U.S. firm will need to 'upstream cash from VZW sooner rather than later.'

'Management commentary on that note was supportive of a decision in 2011, in line with our view that Vodafone will get something in FY11/12 even if it is not a full annualised dividend,' Espirito Santo adds.

Traders point out that Vodafone is also getting a boost after French entertainment and telecom group Vivendi's completion of the sale of its stake in NBC Universal to GE, bringing in the remaining proceeds of $3.8 billion.

The move clears the way for Vivendi to begin talks with Vodafone to acquire its 44 percent stake in French telecom operator SFR.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net



08:59GMT 26Jan2011-BG Group gains on new oil find

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Shares in BG Group rise 3.1 percent after the oil major announces a discovery of light oil in Carioca area, offshore Brazil, with Evolution Securities upbeat on hopes of future production upgrades.

'The key here is that this is yet another discovery along with recent major success offshore Tanzania (multi-TCF gas discoveries) that should increase confidence in BG's ability to deliver its 6-8 percent per annum production growth to 2020,' Evolution Securities says in a note.

'At the strategy update next month BG could well unveil plans for a Tanzanian LNG export project giving scope for the group to increase production guidance.'

Evolution repeats its 'buy' rating on BG Group.

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08:53GMT 26Jan2011-AG Barr up on bright sales outlook

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Shares in A.G. Barr Plc rise 2.8 percent to 1,107 pence after the soft drinks group forecasts like-for-like sales growth of about 10 percent for the full year, helped by strong demand for its Irn-Bru and Rubicon drinks.

'The stock has very sound financial metrics and looks set to offer a resilient performance in what could be difficult markets in FY12,' analyst Nicola Mallard of Investec Securities says.

'Having retreated from a peak of over 1,300 pence, the stock looks attractive at current levels,' says Mallard, who has a 'buy' rating on the stock.

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Reuters messaging rm://tresa.sherin.reuters.com@reuters.net



08:52GMT 26Jan2011-Aggreko up as Goldman starts coverage

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Shares in temporary power provider Aggreko are among the top FTSE 100 risers, firming 2.7 percent, after Goldman Sachs initiates coverage on the company with a 'buy' rating, saying it has 'powerful potential'.

'We believe Aggreko will benefit from structural growth in its profitable International Power Projects (IPP) business, as power shortages in developing economies drive further demand for temporary power,' Goldman says in a note.

'We also expect cyclical growth in the local business as the economic recovery continues, particularly in North America, which we estimate contributes about 20 percent of group revenues and where our economists' view on GDP growth is above consensus,' the broker says.

Goldman forecasts a compound annual growth rate of 11 percent in revenues and 16 percent in EPS over 2010-2013.

Reuters Messaging rm://tricia.wright1.thomsonreuters.com@reuters.net



08:41GMT 26Jan2011-Hamworthy gains on robust earnings view

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Shares in Hamworthy Plc rise as much as 12 percent after the engineer says it expects to exceed its previous earnings expectations for the year, as demand for its pumps and specialist systems for the marine and oil and gas industries rises.

'The group has secured a number of new orders over recent months that will impact the final months of this year. We expect this improvement may be related to the wider strength in some oil and gas segments,' says Jefferies International analyst John Dean, who raises the stock to 'buy' from 'hold'.

The company has also experienced much less in the way of contract delays and deferrals - this may also reflect improving sentiment in the sector generally, adds Dean, who raises the price target on the stock to 460 pence from 360 pence.

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Reuters messaging rm://debasmita.ghosh.reuters.com@reuters.net



08:41GMT 26Jan2011-Heritage Oil dives on gas find disappointment

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Shares in Heritage Oil dive as much as 17 percent as traders point to disappointment that it has discovered large quantities of gas rather than the oil that had been hoped for at a field in the Kurdistan region of Iraq.

'The fact that they struck gas isn't seen as a positive at all,' says one trader. 'It makes the whole area a little less commercial.'

Analysts note the difficulty in getting gas out of the region, given the lack of infrastructure.

Heritage said it was targeting first production in 2015 and studying options such as bringing the gas into Europe via the Nabucco pipeline. First gas is not due to flow through the pipeline until 2015.

'It is easy to assume that as this is gas, monetisation is not straight forward. However, the Turkish market and partners in the Nabucco gas pipeline could see the discovery as valuable supply. Heritage could also sell its stake prior to development as it has done in Uganda,' analysts at Evolution Securities write in a research note.

Dougie Youngson, analyst at Arbuthnot Securities, says he expects the market to respond negatively to the news, however.

'There had been market concerns that the geology at Miran was more complicated than previously thought and we feel that today's news backs up that view,' Youngson says.

Reuters messaging rm://paul.hoskins.reuters.com@reuters.net

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