0739 GMT [Dow Jones] PartyGaming's (PRTY.LN) potential consolidation in the sector could "transform" the company's financial performance, Liberum Capital analyst Richard Taylor says. "The company admit that talks over a potential (tie-up) have taken longer than expected, but that they remain in talks. We retain our view that this could potentially transform earnings given the duplication of costs within online gambling companies," he says. Taylor says the company's second-quarter performance is better-than-expected, although it may lead to small full-year earnings consensus downgrades. Has a buy rating. Shares +3.6% at 229p. (simon.zekaria@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 06, 2010 03:39 ET (07:39 GMT)