PRTY.L Share News (PRTY)

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 1213 GMT [Dow Jones] UK gambling stocks advance Thursday, helped by a vote to legalize online gaming in the US Wednesday. At this stage, this is the most positive step towards the reopening of the US online gaming market since 2006, notes Collins Stewart. "PartyGaming (PRTY.LN) was set to make $750M of profit in 2006, prior to withdrawing from the US and is set to make only $140M this year," it says. Says an amendment to the bill Wednesday outlawed sites that had continued to operate 'illegally' post the Unlawful Internet Gambling Enforcement Act, which implies a ban on Pokerstars/Full Tilt. "These companies have used their US liquidity to buy market share outside the US, so this would be a major boost to non-US-facing gaming companies." PartyGaming (PRTY.LN) shares +23% at 316p, mostly up on its proposed merger with bWin (BWIN.VI). Playtech (PTEC.LN) +12% at 458p, 888 Holdings (888.LN) +6.5% at 50p, and Sportingbet (SBT.LN) +13% at 64p. (ishaq.siddiqi@dowjones.com) 1121 GMT [Dow Jones] Royal Bank Of Scotland cuts CSR (CSR.LN) price target to 390p from 450p. Says the 2Q performance in handsets is poor, growing only 5% year-on-year. By contrast, says peers have experienced growth of 20-60% in handsets, largely driven by smart phones. Given the brokerage's structural concerns, thinks CSR shares should trade on low multiples. Remains cautious. Keeps hold recommendation. Shares +6% at 377p. (andrea.tryphonides@dowjones.com) 1116 GMT [Dow Jones] Royal Bank of Scotland raises Croda International (CRDA.LN) price target to 1425p from 1100p. Says the company's 1H results indicate a very strong performance, particularly in the 2Q. Given the robust performance in 2Q '10 and a confident outlook statement, raises FY '10 pretax profit and EPS forecasts by 21% to GBP182.5M and 90.6p, respectively, near the top end of consensus estimates. Notes that the shares are at an all-time high but thinks they have further to run. Keeps at buy. Shares +1% at 1279p. (andrea.tryphonides@dowjones.com) 1100 GMT [Dow Jones] Partygaming (PRTY.LN) +22% at 1500p, following the company's proposed merger with Bwin Interactive Entertainment (BWIN.VI). "This makes strategic sense," says an analyst. "I see it as a good fit, with annualized synergies of approximately EUR55M." Says combined, the company's market share will increase, making it a leading player in the gaming industry. The enlarged company is to be owned approximately 48.36% and 51.64% by PartyGaming and Bwin shareholders respectively, and will be listed on the London Stock Exchange. Bwin shares +12% at EUR39.91. (ishaq.siddiqi@dowjones.com) 1059 GMT [Dow Jones] The proposed merger between PartyGaming (PRTY.LN) and Bwin (BWIN.VI) makes sense, a Daniel Stewart analyst says. The analyst also says consolidation in the sector has been well-forecast. "This has been coming for a long time now." Says the tie-up has earnings growth potential and can generate huge cost savings. Adds the potential opening of the U.S. online gaming market is providing a catalyst to companies in the sector with a diversified gaming offering. PartyGaming shares +23% at 315p, Bwin +12% at EUR39.91. (simon.zekaria@dowjones.com) 0950 GMT [Dow Jones] UBS raises Rotork (ROR.LN) to buy from neutral and lifts target price to 1900p from 1400p. Says this reflects higher than expected order input and the potential upside from the introduction of the CVA range control valve actuator product. Brokerage says long-term growth seems assured, not just from end-market growth but "due to structural drivers such as increased valve automation and the use of electric actuators in process applications, which offers customers economic efficiencies." Shares +6.3% at 1484p. (ishaq.siddiqi@dowjones.com) 0948 GMT [Dow Jones] Barclays Capital downgrades Yell Group (YELL.LN) to equalweight from overweight and cuts the price target to 30p from 55p. Says guidance has disappointed for two quarters in a row and expects revenue recovery to be slower. Based on lower 2H growth and a reduction in growth in FY '12, the brokerage cuts Ebitda by 5% and 11% for FY '11 and FY '12, respectively. Says lower Ebitda means covenant headroom will become an issue again at Yell. Sees few positive catalysts ahead for the shares. Shares are +4.4% at 26p, recovering from their 19% slump on Wednesday. (andrea.tryphonides@dowjones.com) 0937 GMT [Dow Jones] Exane BNP Paribas upgrades Centrica (CNA.LN) to neutral from underperform and increases the price target by 46% to 350p. Says it is now more confident regarding Centrica's retail margins for the next few years. Should market gas prices remain relatively low as expected, says it will help Centrica to maintain its competitive edge in retail. Says competitors are stuck with expensive oil-linked gas supply contracts and generate much of their electricity from coal, which should enable Centrica to continue offering electricity tariffs below rivals', accelerating its market share gains. Also says the group could win new gas accounts. Shares +0.7% at 306p. (andrea.tryphonides@dowjones.com) 0746 GMT [Dow Jones] KBC Peel Hunt upgrades Rank Group (RNK.LN) to buy from hold, saying against a tough backdrop Rank has delivered a solid 1H. Says Grosvenor continues to be the star of the show, but Mecca has also shown its first growth in customer visits for a decade. Adds with debt down to GBP133M, the group also has the balance sheet to increase investment in core areas. "In an uncertain market, Rank should continue to outperform," adds KBC. Shares +5% at 115p. (peter.nurse@dowjones.com) 0723 GMT [Dow Jones] Royal Dutch Shell (RDSB.LN) looks like it has turned a corner after a good set of 2Q results, says Panmure Gordon analyst Peter Hitchens. After a long period of production decline, Shell has now had two successive quarters where output growth exceeded 5%, he says. The completion of the restructuring faster than expected and with greater cost reductions is a feather in the cap of Chief Executive Peter Voser, he says. Shares +0.4% at 1714p. (james.herron@dowjones.com) 0703 GMT [Dow Jones] AstraZeneca (AZN.LN) earnings are a strong set, with FY core EPS guidance raised to $6.35-$6.65 from $6.05-$6.35, says Shore Capital. Adds the company has also increased its share buyback in 2010 to $2B from $1B, "catalysed we believe by a combination of the positive outcome of the Crestor litigation along with the positive ADCom recommendation for Brilinta last night." Has a buy rating. Shares +4% at 3330p. (ishaq.siddiqi@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 29, 2010 08:13 ET (12:13 GMT)