TOP STORIES:
UK Construction Survey Shows Activity Ebbing
LONDON (Dow Jones)--Activity in the U.K. construction sector grew at a slower pace in June and businesses became less optimistic than at any time this year, a survey showed Monday.
UK Financial Sector Employment At Highest Rate Since Crisis Began
LONDON (Dow Jones)--The number of people employed in the U.K.'s financial sector in early June was the highest since June 2007, just before the start of the financial crisis.
LSE Open To Nasdaq Approach - FT
London Stock Exchange Group PLC (LSE.LN) would be open to considering a merger of equals with Nasdaq OMX Group Inc. (NDAQ), the U.S. exchange operator, the Financial Times reports on its website.
COMPANIES NEWS JULY 4 2011 :
Glaxo, Sports Doping Agency Sign Drug Pact
LONDON (Dow Jones)--The U.K.'s No. 1 drug maker GlaxoSmithKline PLC (GSK) has signed an agreement to help the World Anti-Doping Agency detect medicines that have performance-enhancing potential in sports.
India's Ministry Says No Green Nod For Vedanta's Bauxite Mine Project
NEW DELHI (Dow Jones)--Vedanta Resources PLC's (VED.LN) bauxite mining project in eastern India hasn't received environmental clearance, the government said over the weekend.
INTERVIEWS:
Omega Diagnostics Sees Faster Growth On Allergy Focus
LONDON (Dow Jones)--Omega Diagnostics Group PLC (ODX.LN) expects its revenue growth to accelerate in the coming year as it focuses on the allergy diagnostics market, the U.K. company's chief executive said Monday.
Hydrogen Eyes Europe, M East For International Expansion
LONDON (Dow Jones)--Recruitment firm Hydrogen Group PLC (HYDG.LN) said Monday it is continuing to expand its international reach and is now looking to invest in the Middle East and Europe.
UK ECONOMIC NEWS JULY 4 2011 :
UK Homeowners Inject GBP5.8 Bln Into Homes In 1Q - BOE
LONDON (Dow Jones)--U.K. homeowners injected a net GBP5.8 billion into their properties in the first quarter of 2011, Bank of England figures showed Monday.
BROKER COMMENTS:
Brewin Dolphin Raises John Menzies Target Price
1146 GMT [Dow Jones] Brewin Dolphin raises John Menzies (MNZS.LN) target price to 700p from 685p following the company's 1H update. Says strong contract momentum through the 1H period indicates the company's aviation unit is trading ahead of expectations. As a result, Brewin raises operating profits estimates for the aviation unit by GBP2 million in FY11, FY12 and FY13. Brewin rates the stock at buy, citing a compelling valuation at current share prices levels. Shares rise 7.8% to 545p.
JPMorgan Cuts Cairn Energy Target
1132 GMT [Dow Jones] JPMorgan Cazenove cuts Cairn Energy (CNE.LN) target to 480p from 500p as it adjusts its model for the new and reduced pricing of the sale of a 40% stake in Cairn India (532792.BY) by Cairn Energy to Vedanta Resources (VED.LN). Says the Cairn investment case now hinges almost completely on Greenland. "Given the upside from Greenland in the event of success...and the four-well campaign targeting different play independent prospects in different basins, we remain with our overweight recommendation." Shares down 1.7% at 411p.
Panmure Gordon Lifts Genus Target Price
1031 GMT [Dow Jones] Panmure Gordon raises its Genus (GNS.LN) target price to 1070p from 1025p following the group's trading update. Panmure says the company's trading performance continues to be in line with expectations. "We expect Genus to have returned to mid-teens EPS growth after the muted growth of 2010," says Panmure. It adds that Genus, through its heavy investment phase and cash generation, has turned more positive. "We see no reason why Genus should lose its traditional high rating," adds Panmure. The brokerage rates the stock at buy. Shares down 0.9% at 1031p.
Fenner's Bolt-On Deal Small But Profitable - RBS
0946 GMT [Dow Jones] Fenner's (FENR.LN) acquisition of Tasmanian belt manufacturer Statewide for around A$3.9 million is a small, but profitable bolt-on deal, says Royal Bank of Scotland. It helps Fenner expand its presence in the Australian mining sector and "fits nicely" with the group's strategy of building its service network across its 'Conveyor Belting' division, says RBS. "We believe that Fenner will continue to look for these bolt-on style acquisitions in the future, and has the firepower to do so," adds RBS. Rates the stock at buy with a 435p target price. Shares +0.8% at 410p.
Deutsche Bank Trims British Land Target Price
0923 GMT [Dow Jones] Deutsche Bank trims its British Land (BLND.LN) target to 820p from 840p. "We have made a modest cut in our 2012 NAV projection and share price target to correct an error in linking from our model to...financial database." However it expects the shares to appreciate over the next 12 months. It says British Land is well-placed to buy into property loan portfolios owned by banks. Additionally BL has sound exposure to good prospects of out-of-town retail and similar exposure to booming central London offices, says DB. Recommendation is buy. Shares +2% at 628p.
Evolution Upgrades ATH Resources To Add
0910 GMT [Dow Jones] Evolution Securities upgrades ATH Resources (ATH.LN) to add from neutral and lowers its target price to 49p from 55p. The company's share-price fall that resulted from recent mining problems was overdone, it says. ATH Resources is expected to reinstate its dividend at the end of its fiscal year in October, assuming the miner's problems don't persist, Evolution adds. Shares flat at 46p.
Clarkson Investment Upgrades Lamprell To Buy
0741 GMT [Dow Jones] Clarkson Investment Services upgrades Lamprell (LAM.LN) to buy from hold, and increases its price target to 450p from 400p to account for the acquisition of Maritime Industrial Services (MIS). Also, Lamprell announces the success of its voluntary cash offer for 100% shares of MIS on June 30 '11. Says, "we think the transaction is well on track for completion in 3Q '11 as a result of these measures." Shares are up 2.3% at 395.4p.
BofA Merrill Lynch Raises DS Smith Price Target
0713 GMT [Dow Jones] BofA Merrill Lynch raises DS Smith (SMDS.LN) price target to 310p from 250p following the full-year results, June 23. It generated 8% packaging volume growth in FY '11 in a market growing 3%. Despite four-month lags in pricing and a surge in old corrugated containers costs towards the end of FY '11, says the company offset GBP166M of input cost inflation on a pound-for-pound basis. "In our view, this is evidence that chief executive Miles Roberts' strategy to boost growth and returns with service and innovation is already working." Keeps at buy. Shares +0.8% at 258.1p.
BofA Merrill Upgrades Vedanta To Neutral
0707 GMT [Dow Jones] Bank of America Merrill Lynch upgrades Vedanta Resources (VED.LN) to neutral from underperform after an oil minister in India granted approval for the deal with Cairn Energy (CNE.LN). "In as much as Vedanta will be buying a very cash-generative asset for cash we expect the transaction to be significantly earnings-accretive," says BofA. 2350p target price. Shares +0.4% at 2103p.
BofA Merrill Lynch Raises Stagecoach Price Target
0659 GMT [Dow Jones] BofA Merrill Lynch increases Stagecoach (SGC.LN) price target to 300p from 270p, suggesting 12% upside potential. Is updating estimates and valuation after the '11 results, released June 29. Revenue momentum continued across the three divisions of the business in the fourth quarter. For FY '12 the brokerage is confident that management will deliver above-consensus earnings growth. Group FY '12 EPS forecast is unchanged at 24.2p versus consensus of around 21.9p. Retains buy rating. Shares closed Friday at 268.5p.
Imperial Tobacco Leads Exit From Spain Price War
0658 GMT [Dow Jones] Imperial Tobacco (IMT.LN) appears to be leading the industry out of the price war in Spain, Morgan Stanley says. The company has broadly increased prices across its portfolio to pre-price war levels, following pricing stability in the market since British American Tobacco's (BATS.LN) last move on June 14, the brokerage notes. This is a clear positive for the industry, it says, and Imperial Tobacco stands to benefit most because of its significant exposure in Spain. The brokerage is hopeful the competition will follow Imperial Tobacco's lead. The stock is rated at overweight with a 2490p target price. Shares closed Friday at 2117p. For the latest updates PRESS CTR + D or visit Stock Market news Today
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