STOCKS NEWS UK-Morse leaps on outlook, cash position
STOCKS NEWS Reuters Results diary
Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]
UK [STXNEWS/UK] Stocks on the move [HOT-RTRS]
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08:21GMT 03Jul2009-Morse leaps on outlook, cash position
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Shares in Morse Plc (MOR.L) jump 25 percent after the British IT consultancy group forecasts full year revenue and adjusted earnings before interest and tax (EBIT) from continuing operations at the upper end of analysts' view and says it has 12.7 million pounds in cash on hand.
"We are moving from 'hold' to 'buy' following news that Morse cash is far, far better than expected at 12 million pounds - we had anticipated 3.4 million pounds," analysts at Panmure Gordon say.
The brokerage, which also raises its price target on Morse's stock to 22 pence from 10.5 pence, says the operating profit outturn for the year will be dependent upon the conversion of the company's sales pipeline.
For more, double click on [ID:nBNG537887]
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07:50GMT 03Jul2009-McBride rises, Goldman upgrades
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Shares in McBride (MCB.L) rise 5.3 percent after Europe's biggest maker of retailer own-brand household products is upgraded to "neutral" from "sell" by Goldman Sachs and removed from its pan-European sell list following last week's upbeat pre-close trading statement. [ID:nLO714045]
"We believe McBride has traded well through the current downturn, benefiting from the consumer trading down to private label household and personal care products. At the same time, the company has demonstrated its ability to pass on what was significant cost inflation through pricing and through reducing operating costs," says Goldman analyst William Hutchings.
For more, click on [ID:nLO598629] and [ID:nLO714045]
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07:46GMT 03Jul2009-Chemring gains; RBS upgrades to "buy"
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Shares in military goods maker Chemring Group (CHG.L) gain 2.8 percent supported by an upgrade in rating by RBS to "buy" from "add", mainly on valuation grounds with its target price unchanged at 2,469 pence.
RBS says, in a note, Chemring's positive momentum continues and a return to the acquisition strategy in its Energetics business could augment the organic growth opportunities open to the group.
RBS says it thinks Chemring's valuation looks attractive, and looks more so if the broker considers the upgrade potential it feels exists in its forecasts.
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07:32GMT 03Jul2009-UK Small Caps flat early on
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The FTSE small cap index .FTSC is flat in early morning trade, just underperforming the blue chip .FTSE index, up 0.3 percent following sharp falls on Thursday, with the mid cap .FTMC up 0.1 percent.
With U.S. markets closed on Friday for a holiday ahead of Independence Day, overall trading looks to remain fairly lifeless, with little corporate news to provide any features.
Photo-Me (PHTM.L) is the biggest small cap riser, up 6.8 percent in continuing reaction to Thursday's full-year results which showed a 17 percent rise in EBITDA, with investors cheered by the debt outlook for the photo booths operator.
Home shopping and education supplies firm Findel (FDL.L) also finds support, up 3.6 percent ahead of its annual general meeting, due Friday.
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07:25GMT 03Jul2009-Grafton drops, profits hit
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Shares in Irish building supplies group Grafton (GRF_u.I)(GRF_u.L) fall 5 percent to be the second worst performer in the broadly flat Irish market .ISEQ after it warns that weak housing markets in the UK and Ireland have hit profitability severely.
"While it is likely that we will be significantly downgrading our current adjusted earnings forecast ... we are encouraged by the cashflow generation and the fact that it is still making profits on disposals," Goodbody analyst Robert Eason says.
For more double click on [ID:nL3112403] or [GRF_u.I-RTRS-LEN]
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07:23GMT 03Jul2009-European shares flat in subdued trade
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European shares move in and out of positive territory in early trade on Friday, following the previous session's selloff triggered by downbeat U.S. jobs data.
The FTSEurofirst 300 .FTEU3 index of top European shares is up 0.1 percent at 843.44 points.
Data showed on Thursday U.S. employers shed nearly half a million jobs in June and the unemployment rate surged to 9.5 percent, the highest in nearly 26 years. [ID:nN01210643]
U.S. markets will be closed on Friday for a holiday, and brokers say this is likely to lead to subdued trading in Europe.
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