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UK MARKET TALK ROUNDUP: BROKERS COMMENTS

Fri, 30th Jul 2010 07:59

Broker comments 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 0659 GMT [Dow Jones] Shore Capital upgrades PartyGaming (PRTY.LN) to hold from sell following the announcement of its plan to merge with Bwin (BWIN.VI). This deal is highly attractive and could provide significant future earnings accretion, says Shore. However, there remains some transaction risk and the shares may drift post this announcement until completion, thus the hold rating rather than a buy, says Shore. Still, the merger is transformation not only for PartyGaming, but the industry as a whole, says Shore. Shares closed Thursday at 309.5p. (peter.nurse@dowjones.com) 0644 GMT [Dow Jones] UBS downgrades Bovis Homes Group (BVS.LN) to neutral from buy in a review of UK housebuilders's stocks. Despite consistent improvement in all key housebuilding company metrics in 2010, the sector has underperformed by 16% year-to-date, giving back all the outperformance in 2009. "We do not think that this primarily reflects risks to house prices or the impact of government austerity measures, but [it reflects] the stalling of mortgage approvals at circa 50,000 per month and the consequent risk over the timing/quantum of normalized returns," adds UBS. Bovis shares closed Thursday at 348p. (ishaq.siddiqi@dowjones.com) 0629 GMT [Dow Jones] TalkTalk's (TALK.LN) 1Q results "look fine" and broadly in line with expectations, says Evolution Securities analyst Steve Malcolm. 1Q revenue of GBP444M is GBP1 million above consensus, while broadband average revenue per user is 4p below consensus, he notes. "If there is any criticism at all, or any niggles, it is just that the mix between the B2B and the consumer business is probably a little bit more skewed towards B2B," he adds. The group has said it is on track to deliver its fiscal 2011 guidance, Malcolm says. The deal with Vodafone (VOD.LN) was "widely expected", Malcolm retains. He retains a buy rating on TalkTalk and 161p target price. Stock closed at 123p Thursday. (lilly.vitorovich@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 30, 2010 02:59 ET (06:59 GMT)
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25 Mar 2011 17:19

London close: Footsie back at 5,900

Blue chips closed the week just above 5,900 with decent gains across a range of sectors helped by a smattering of broker recommendations. Reckitt Benckiser is wanted after Bank of America Merrill Lynch upgraded the stock of the Cillit Bang maker to "buy" from "neutral", while Autonomy is in the red

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25 Mar 2011 15:28

FTSE 250 movers: African Barrick rises on Tanzanian success

African Barrick Gold is a top performer after having further successes with its drilling programme on the Nyanzaga project in Tanzania. Euromoney Institutional Investor, the business publisher and exhibitions organiser, is among the fallers after its pre-close trading update underwhelmed investors.

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25 Mar 2011 14:07

London afternoon: Gaming firms in demand

Leading shares are mixed after the strong opening prompted traders to bank some profits at the end of a week which has seen the top share index advance by around 170 points. Broker commentary is behind the share price movements of the Footsie's best and worst performers. Reckitt Benckiser is wante

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4 Mar 2011 06:43

Friday tips round-up: Cobham, Aviva, Amec...

Yesterday's full-year figures from Cobham have much to recommend them. Underlying pre-tax profits were up by a healthy 4% to £306m, on revenues broadly flat at £1.9bn, thanks to an improvement in margins to 18.3%. Cobham is also working hard to insulate itself from the ructions over defence spendin

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3 Mar 2011 16:39

London close: Shares soar on Libya deal hopes

Reports that the Libyan situation might be resolved through mediation rather than violence sent UK shares sharply higher. The Arab League is said to be considering a proposal to end the fighting in Libya sending oil prices higher. Heavy oil users such as airline International Consolidated Airlines

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3 Mar 2011 15:28

FTSE 250 movers: PartyGaming surges as sales rise

Online gambling firm PartyGaming is the best performer on the FTSE 250 after 2010 revenues rose by 15%, after casino games, bingo and sports betting offset weakness from the company's poker operations. Cobham was also higher despite statutory pre-tax profits for 2010 falling to £189m, from £245m, h

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3 Mar 2011 14:33

Revenues soar at PartyGaming

Casino games, bingo and sports betting drove revenues higher at PartyGaming in the year to 31 December, offsetting weakness from the company's poker operations. Revenues rose by 15% from the previous year to €357.3m (£300m) to €310.1m, with casino revenues jumping to €151.4m from €136.3m, bingo rev

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3 Mar 2011 14:13

London afternoon: Footsie cruises towards 6,000

Footsie has 6,000 within its sights once more as stocks bounce back strongly on hopes that the Libyan situation might be resolved. Reports that the Arab League is considering a proposal to end the fighting in Libya have boosted sentiment, and has sent the price of oil into reverse. Heavy oil users

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28 Jan 2011 15:56

FTSE 250 movers: BTG and IG Group on the decline

BTG is on of the heaviest fallers despite yesterday's announcement that the speciality pharmaceuticals developer expects its recurring revenues will grow by £5m following the Biocompatibles acquisition. IG Group is following suit after the its was reported yesterday that the spreadbet firm has one

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17 Dec 2010 08:12

PartyGaming's casino keeps year on track

PartyGaming, the internet gambling firm that's merging with rival bwin, has traded in line with expectations during the fourth quarter, with a stronger casino business offsetting weakness in poker and bingo. The company said trading since the end of September has been "solid" overall, thanks mainly

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15 Nov 2010 08:04

Sportingbet confirms talks

Online bookmaker Sportingbet has confirmed it is in talks about 'potential opportunities', rumoured to be with Swedish rival Unibet in a deal that could be worth up to £600m. "The company confirms that it has had and will continue to have discussions with different parties in relation to a variety

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22 Oct 2010 16:24

London close:Dull end to the week

London has closed lower as Wall Street failed to arouse much enthusiasm and miners fell back with a weak dollar. Talks about currency tensions at this weekend's G20 meeting in Korea are also making traders cautious. Lonmin, Eurasian Natural Resources Corp, Vedanta and Anglo American are lower. Tw

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22 Oct 2010 15:25

London afternoon: Gloomy mood continues

Blue chips are stuck in the red as Wall Street failed to arouse much enthusiasm and miners continue to wallow in negative territory as dollar strength trims commodity prices. US company earnings have been largely well-received, but talks about currency tensions at this weekend's G20 meeting in Kore

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22 Oct 2010 12:54

Broker tips: GSK, PartyGaming, Debenhams

Panmure Gordon has not changed its forecasts for GlaxoSmithKline following third quarter results that failed to rouse much excitement. The drugs firm's results were broadly in line with the broker's expectations reporting revenues of £6.81bn and earnings per share of 28.2p. The broker recently dow

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22 Oct 2010 12:44

Broker snap: Exciting future ahead for PartyGaming

KBC Peel Hunt expects that the completion of PartyGaming's merger with bwin Interactive Entertainment to be one "well worth waiting for". The internet gambling firm's third quarter results were in line with forecasts with revenues at €85.3m. This represented a 6% decline compared with the last quar

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