UK MARKET TALK ROUNDUP: SHARES GAINING

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 1000 GMT [Dow Jones] Sanford Bernstein says "the single most important comment in Vodafone's results was the statement that 'Vodafone will set out how we intend to accelerate our strategy to drive shareholder value'." Broker expects a "portfolio review and clearer commitment to change whether in the form of disposals or structural change." Vodafone (VOD.LN) confirmed guidance and outlook for the full year and delivered 1Q revenue of GBP11.26Bln, 0.7% ahead of consensus, says Sanford Bernstein, which has an outperform rating on Vodafone and 180p target price. Shares +0.4% at 150p. (lilly.vitorovich@dowjones.com) 0935 GMT [Dow Jones] ARM Holdings (ARM.LN) and Microsoft (MSFT) announce a multi-year contract for the U.S. software giant to license ARM architecture. There are no further details on the deal, "so we can only assume this may lead to Microsoft opening up its Windows 7 platform to ARM, although this has not been commented upon," says Investec Securities. "If this were to happen, we would expect the near-term sales upside to be minimal, but it would give ARM an additional medium term revenue opportunity and further strategic value." Has a hold rating and 290p target price. Shares +6.3% at 336p. (ishaq.siddiqi@dowjones.com) 0813 GMT [Dow Jones] ARM Holdings (ARM.LN) +6.1% at 336p following a deal which sees ARM and Microsoft (MFST) signing a new licensing agreement. "This is an extremely curious deal, since it signals an intention by Microsoft to enter the semiconductor hardware space," says a trader. "Not sure what to make of it, but it definitely will not do any harm to ARM. Also, Microsoft and ARM coming closer would increase the possibility of Windows 7 becoming available on ARM at some point in the future," the trader adds. Also helping ARM's shares, peer STMicroelectronics' (STM.MI) 2Q earnings show a bigger-than-expected profit as gross margins reach a nine-year high. (ishaq.siddiqi@dowjones.com) Contact us in London. +44-20-7842-9288 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 23, 2010 06:00 ET (10:00 GMT)