UK MARKET TALK ROUNDUP: BROKERS COMMENTS

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 0616 GMT [Dow Jones] Morgan Stanley raises its Premier Oil (PMO.LN) target price to 1725p from 1575p following the company's update. It notes the company's intention to accelerate the development of the Catcher well, as well as the farm-in option agreement for the Solan field and continued progress on Huntington. The bank says these all underpin a sustained ramp-up in production. Keeps the stock at overweight. Shares closed Thursday at 1446p. (michele.maatouk@dowjones.com) 0613 GMT [Dow Jones] Jefferies initiates coverage of BT (BT.A.LN) at buy with a 190p price target; Cable & Wireless Communications (CWC.LN) and Cable & Wireless Worldwide (CW.LN) at hold, with 67p and 98p price targets, respectively; TalkTalk Telecom (TALK.LN) at underperform with 113p price target, and Vodafone (VOD.LN) at buy with 175p price target. Raises Virgin Media (VMED) to buy from hold. Has $25.30 price target. Says in the current environment, telecoms offer secure above-inflation dividend yields. Adds that the last two to three years witnessed coordinated price increases from UK fixed-line operators but TV/fiber will offer BT a crucial opportunity to regain retail share. Also says 'pay TV' is changing rapidly, allowing digital subscriber operators to build credible three-play bundles for the first time. (andrea.tryphonides@dowjones.com) 0606 GMT [Dow Jones] UBS upgrades Invensys (ISYS.LN) to buy from neutral but cuts target price to 320p from 330p. Says: "20% share price underperformance versus the UK Capital Goods sector in three months, combined with the emerging upside in the Controls division, has prompted us to upgrade." Notes leading indicators in controls suggest FY '11 is shaping out to be a decent year and says this may be enough to reverse recent underperformance. However, the brokerage remains prudent and takes a 10% haircut on its Rail valuation, which accounts for the price target cut. Shares flat at 262p. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 16, 2010 02:16 ET (06:16 GMT)