Stocks on the rise in the UK today. Compiled by Dow Jones Newswires Markets Desk, markets.eu@dowjones.com Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com 1216 GMT [Dow Jones] BP's (BP) sale of $7 billion of oil and gas production assets in North America and Egypt won't compromise the company's growth strategy, says JPMorgan analyst Fred Lucas. "As a test of the strategic importance of the assets sold to Apache, we challenge investors to find much or any reference to them in BP's recent key strategy updates," he says. BP could raise a lot more money selling assets in Alaksa, the North Sea, or Argentina while still maintaining its strategy, he adds. The speed of the sale also dispels worries about BP's liquidity, he says. Shares +3.3% at 400p. (james.herron@dowjones.com) 1129 GMT [Dow Jones] Top line progression in GlaxoSmithKline's (GSK.LN) 1H results is pleasing, as is the significant cash inflow and net debt reduction, says Jeremy Batstone-Carr, analyst and director of private client research at Charles Stanley. Says investors should not have been surprised by the restructuring or the legal charge both of which impacted the P&L. Adds the dividend increase is in line with expectations. Elsewhere, says news of the filing of Benlysta in the USA and EU remains significant for sentiment. Maintains accumulate recommendation. Shares +0.5% at 1179.5p, nudging a tad higher since the release of the results. (andrea.tryphonides@dowjones.com) 1006 GMT [Dow Jones] Investec Securities lifts its full-year earnings per share forecast on Next (NXT.LN) to 218p from 213p following a completed share buy-back ahead of the company's first-half trading update on August 4. Expects group to deliver upper end of 1H guidance in retail. Buy rating and 2,420p target price. Shares +2.8% at 2127p. (simon.zekaria@dowjones.com) 1002 GMT [Dow Jones] Royal Bank of Scotland nudges up United Business Media (UBM.LN) price target to 540p from 520p. Notes that industry data suggest there has been modest growth in U.S. tech magazine advertising in 2Q, after several years of decline. Also, says message volumes at PRNewswire are up 4% year-on-year in 1H '10, an improvement on 2H '09 when message volumes were down 5% year-on-year. Narrows its FY '10 organic revenue decline forecast for the print magazine division to -10% from -20%. Keeps at hold. Shares +2.1% at 525p. (andrea.tryphonides@dowjones.com) 0956 GMT [Dow Jones] Citigroup cuts Cable & Wireless Worldwide (CW.LN) price target to 87p from 110p following the company's profit warning. Brokerage also cuts its '11 EPS estimate to 6.2p from 7.2p and its '12 EPS estimate to 9.1p from 10.2p. Still, notes the sharp fall in the share price on the back of the news and maintains its buy rating on the stock "in the expectation of something of a recovery from here." Shares +1.3% at 70p. (michele.maatouk@dowjones.com) 0946 GMT [Dow Jones] Bank of America Merrill Lynch raises IG Group (IGG.LN) price target to 500p from 480p following an encouraging start to FY'11 and slightly more favorable forex effects than previously estimated. BofA Merrill notes current trading remains strong and reckons the company is well positioned to increase market share. Raises '11 EPS estimate to 33.19p from 32.16p and '12 EPS estimate to 35.75p from 34.76p. Keeps the stock at buy. Shares +5.9% at 469p. (michele.maatouk@dowjones.com) 0937 GMT [Dow Jones] UBS raises IMI (IMI.LN) price target to 800p from 720p, saying it expects 2Q trading to have been strong. Raises '10 EPS estimate to 63p from 60.9p and '11 EPS estimate to 70.8p from 67.4p. "We think investor focus on returns...and free cashflow generation (yield 8%) provides further upside to valuation, while a net cash balance sheet in 2011 is supportive for dividends/buybacks." Notes the stock trades at a 15% discount to the sector and remains a key pick along with Weir (WEIR.LN) and Renishaw (RSW.LN). IMI shares +3.4% at 751p. Keeps at buy. (michele.maatouk@dowjones.com) 0929 GMT [Dow Jones] Royal Bank of Scotland lifts Premier Oil (PMO.LN) price target to 1700p from 1500p. Says the shares still have further to go, even after the re-rating following the recent Catcher discovery in the North Sea, M&A read-across and a well-received analysts' visit to its Southeast Asia operations. Says: "The shares can continue to re-rate on the back of positive sentiment over the growth profile and near-term drilling." Increases '10 production forecast to 44.0kboep/d (thousand barrels of oil equivalent per day) from 43.4kboep/d, on better than expected performance of the Indonesia and UK assets in 1H '10. Keeps at buy. Shares +3.2% at 1476p. (andrea.tryphonides@dowjones.com) 0816 GMT [Dow Jones] Numis Securities expects upgrades to earnings forecasts on Burberry (BRBY.LN) in the coming quarters. The broker says in a note that the company is set for a further profit drive. Adds: "We see little to upset the group's present earnings momentum, particularly with innovation and space growth underpinning progress. A global growth story with clear operational earnings momentum." The broker also says the stock is rightly trading at a premium. Hold rating and 715p target price. Shares +2.5% at 840p. (simon.zekaria@dowjones.com) 0745 GMT [Dow Jones] Credit Suisse cuts Cable & Wireless Worldwide (CW.LN) to neutral from outperform, and target to 85p from 120p. Says CWW's exposure to UK government business appears much more 'discretionary' than anticipated. CWW has yet to formally negotiate with the UK government over any changes to contracts, and whilst its guidance assumes some impact from this, Credit Suisse says there is still downside risk. Cuts '11 EPS to 7.9p from 9.2p, and says the new FY '11 Ebitda forecasts of GBP444M is 2% below guidance. Shares +1.4% at 70p. (peter.nurse@dowjones.com) 0739 GMT [Dow Jones] HSBC lifts Burberry (BRBY.LN) target to 950p from 900p following the group's GBP70M acquisition of 50 stores from its existing franchise partner in China. "There have been so many positive changes at Burberry in the past years that it looks like the brand has been through a revolution," analyst Erwan Rambourg says. Says the company's sales should outperform the luxury industry and the stock deserves to be trading at a slight premium following years of trading at a discount. Overweight rating. Shares +2.3% at 838p. (simon.zekaria@dowjones.com) 0708 GMT [Dow Jones] The price tag on BP's (BP) sale of assets in North America and Egypt to Apache (APA) is at the top end of expectations, says NCB Stockbrokers analyst Peter Hutton. The $7Bln price equates to $4.50 per barrel of estimated resources, higher than similar deals done by Shell (RDSB.LN) and Total (TOT) at $3.90 and $2.10 per barrel, respectively, he says. "This is speedy action and divests assets which are not really core to BP at an attractive price," he says. Asset sales in Vietnam and Pakistan should raise an extra $1.7Bln, he says. BP shares +1.8% at 394p. (james.herron@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 21, 2010 08:16 ET (12:16 GMT)
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