STOCKS NEWS UK-Carphone Warehouse leaps; RBS ramps up view
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07:35GMT 19Jun2009-Carphone Warehouse leaps; RBS ramps up view
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Shares in telecoms-to-retail group Carphone Warehouse (CPW.L) rise as much as 8 percent, helped higher after analysts at RBS up their rating on the stock to "buy" from "hold", ramp up their price target on the stock to 230 pence from 114 pence and lift their 2011 earnings forecast 38 percent.
RBS says Carphone's acquisition of Tiscali UK (TIS.MI) has improved its market position and consequently its bargaining power.
"With roughly the same number of subscribers as BT, CPW now has more leverage in negotiating the price of access to BT's (BT.L) planned fibre network," RBS analysts write, adding that Tiscali's TV service could also improve the competitiveness of its Talk Talk unit should Carphone exploit it.
They also point to a receding earnings risk for its new Best Buy Europe (BBY.N) electrical stores joint venture given an improving market for mid-tier handsets and falling rents on retail space.
"At the current price, we estimate the shares reflect almost no value for the retail business, which we value at 72p," RBS says, adding that the risk company co-founder David Ross will offload much more of his stake may have receded.
Reuters Messaging rm://paul.hoskins.reuters.com@reuters.net
07:35GMT 19Jun2009-AstraZeneca up as it joins UBS "First XI"
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AstraZeneca (AZN.L) shares rise 1 percent as UBS adds the drugmaker to its UK "First XI" stock list, replacing miner Rio Tinto (RIO.L). Continued...
