Legal & General Share News (LGEN)

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 0929 GMT [Dow Jones] Nomura reinitiates coverage of Prudential (PRU.LN) at neutral and raises the price target to 700p from 680p. Continues to view its Asian franchise as highly attractive but thinks the market already recognizes this. In contrast, thinks Legal & General (LGEN.LN) and Aviva (AV.LN) are undervalued and have a higher likelihood of providing positive earnings surprises than Prudential. As a consequence, they remain Nomura's top picks and are both rated at buy. Sees more medium-term risks to Prudential's IFRS earnings growth than with L&G and Aviva, and expects a slowdown in Prudential's sales following its very strong growth in 2H '09. Pru shares +1.1% at 566p. (andrea.tryphonides@dowjones.com) 0910 GMT [Dow Jones] Evolution Securities upgrades British Sky Broadcasting Group (BSY.LN) to buy from reduce after News Corp (NWS) approaches the company with a 700p cash per share offer, which is rejected. Given the relationship between the two parties, expects an amicable conclusion at a price between 750p and 800p. Says deteriorating market conditions are probably the biggest risk to BSkyB's shareholders getting 800p but if that's the case, the shares should be comfortably underpinned at News Corp's informal 700p proposal. Has 780p price target. Shares +0.4% at 703p. News Corp., which owns Dow Jones & Co. the publisher of this newswire, currently has a 39.1% stake in BSkyB. (andrea.tryphonides@dowjones.com) 0858 GMT [Dow Jones] Numis raises BlueBay Asset Management (BBAY.LN) to buy from add, following a 22% slide in the share price since the release of the 3Q trading update April 22, 2010. "We believe the share price reaction of -22% is factoring in a disaster scenario, which we do not believe can be that likely, given the performance and strong flow momentum at the end of 3Q," Numis says. it adds that the 3Q results were good, with organic growth of 9%. 441p target. Shares +5.3% at 302p. (ishaq.siddiqi@dowjones.com) 0813 GMT [Dow Jones] Credit Suisse raises Premier Farnell (PFL.LN) price target to 290p from 275p following the company's 1Q results. Sales and Ebita are 3% and 11% ahead of the brokerage's estimates. It says sales growth in May accelerated to 30%, boding well for further strong profit growth. It reckons the group should achieve 22% organic growth in 1H'11, making consensus expectations of around 7% too cautious. CS also sees the potential for dividend growth. Reiterates outperform rating on the stock. Shares +2% at 252p. (michele.maatouk@dowjones.com) 0813 GMT [Dow Jones] Sanford Bernstein increases its target price on British Sky Broadcasting (BSY.LN) to 750p from 600p following News Corp.'s (NWS) 700p a share cash proposal and the likelihood of an improved offer between now and Dec. 31, 2011. Media analyst Claudio Aspesi says the economics of BSkyB easily support a 750p a share valuation on a DCF basis; a 800p a share valuation "is at the edge of what we would think is comfortable." Aspesi has a marketperform rating on BSkyB. BSkyB shares +0.3% at 702p. News Corp., which owns Dow Jones & Co. the publisher of this newswire, currently has a 39.1% stake in BSkyB. (lilly.vitorovich@dowjones.com) 0806 GMT [Dow Jones] Panmure Gordon lifts N Brown (BWNG.LN) target price to 320p from 325p, following the acquisition of lingerie e-tailer Figleaves for GBP11.5M. "This acquisition of a well established e-tailer gives N Brown access to a younger, wealthier customer, an international e-tail business, and consolidates N Brown's position as No.1 in UK online lingerie retail." Expects the acquisition to be earnings-accretive in FY '12. Adds the shares are attractively valued on a discount to the sector and to home shopping peers. Keeps the stock at buy. Shares +0.2% at 265p. (michele.maatouk@dowjones.com) 0757 GMT [Dow Jones] Panmure Gordon upgrades Filtrona (FLTR.LN) to buy from hold, and boosts its target price to 265p from 233p. Says the company issues a very positive update, with growth much better than expected and margin improvements dropping through. Adds a number of markets appear to have seen a return of demand, and prospects appear much better than before - albeit with little visibility and certainty. "However, strength of this growth suggests a much better year for Filtrona and given cost reductions and efficiency improvements an increasingly improving bottom line," it adds. Shares +17% at 229p. (ishaq.siddiqi@dowjones.com) 0709 GMT [Dow Jones] GKN's (GKN.LN) creation of a new division shows good diversification, with a strategy for growth and market expansion, notes an analyst. Says this diversification is good news, but it is now up to the management to make the strategy work. The new division, GKN Land Systems, has current annualized sales of GBP700M. The company aims to increase the size of this business over the next five years to sales of about GBP1.5B. Shares +0.5% at 130p. (ishaq.siddiqi@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 16, 2010 05:29 ET (09:29 GMT)