STOCKS NEWS UK-Moneysupermarket gains after update
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11:37GMT 6Jul2009-Moneysupermarket gains after update
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Shares in Moneysupermarket.com (MONY.L) advance 3.7 percent following the release of an in-line trading update from the price comparison internet site which leads Noble to repeat its "positive" stance on the group.
Moneysupermarket says "The financial performance of the group for the first half of 2009 has remained broadly consistent with the position outlined in the IMS released on 16 April and results for the period are expected to be in line with the board's previous expectations."
Noble says whilst there is little detail in the trading statement, it clearly states that trading has been in line with management expectations which is encouraging, given the consistent downbeat statements the firm has been issuing for the past 12 months.
The broker points out that earnings estimates for Moneysupermarket have been downgraded by around 50 percent in the last 12 months.
Noble says whilst the motor insurance market remains very competitive, Moneysupermarket's strong brand and 73 million pounds of cash should help it emerge as a stronger company from the economic downturn.
For more double click on [ID:nWLA8262]
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11:02GMT 6Jul2009-UK small caps down 0.5 pct at midday
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The FTSE small cap index .FTSC is down 0.6 percent, but outperforms larger cap counterparts as global economic fears and retreating energy and metal prices sees the FTSE 100 .FTSE drop 1.4 percent and the FTSE 250 .FTMC shed 1.3 percent.
JJB Sports (JJB.L) falls 22 percent as the British sports retailer says it is looking at an equity fundraising. This follows a report in Saturday's Times newspaper that the firm is seeking to raise at least 50 million pounds by selling shares at 12 pence each. [ID:nL6125010]
Oxford Biomedica (OXB.L) rises 6.4 percent after the gene therapy specialist says findings by the U.S. Food and Drug Administration support further development of its lead drug, Trovax.
"These regulatory developments should allow the company to accelerate licensing discussions," says broker Panmure. [ID:nRnsF1394V]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
10:47GMT 6Jul2009-Croda up; Credit Suisse initiates
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Shares in Croda International (CRDA.L) gain 1.7 pct after Credit Suisse starts coverage of the specialty chemicals firm with an "outperform" rating and a 700 pence target price.
Credit Suisse says, in a note, that the key to its buy case for Croda is its view that the market has underestimated the potential for margin improvement in the firm's industrial specialties business.
The broker says the upside likely from this business is reflected strongly in its discounted cashflow valuation for Croda of 856 pence, which is based on more conservative margin assumptions than both Croda's historical performance and its management targets.
Credit Suisse points out that Croda's current share price implies zero improvement on first quarter EBIT margins to 2013, which the broker sees as overly pessimistic.
The broker says Croda will report its first-half 2009 results on Jul 28 and it expects sequential improvement in profitability at the Industrial Specialties division.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
10:25GMT Carphone rises; Nomura ups to "buy"
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Shares in Carphone Warehouse (CPW.L) rise 1.5 percent to 155.75 pence, outperforming the FTSE 250 .FTMC, down 1 percent, as Nomura upgrades its rating to "buy" from "neutral" and hikes the target price to 230 pence, from 160 pence.
In a note, Nomura says it does not believe that the market has adequately reflected the strategic benefits of transformational deals in CPW's valuation, such as its acquisition of Tiscali's UK operations.
It adds: "Following CPW's experience with AOL, we believe management has been deliberately cautious on estimating Tiscali synergies - we highlight material upside."
It says that the company's demerger - targeted for March 2010 - is likely to be positive for valuation as it will allow a re-rating of each division.
Reuters Messaging rm://brian.gorman.thomsonreuters.com@reuters.net
09:54GMT 6Jul2009-Oxford Bio rises on TroVax FDA boost
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Shares in Oxford Biomedica (OXB.L) rise as much as 13 percent after the gene therapy specialist says findings by the U.S. Food and Drug Administration (FDA) support further development of its lead drug, Trovax.
Oxford Biomedica says the FDA supports the company's proposal to pursue clinical development of TroVax in metastatic disease, including colorectal, ovarian, hormone refractory prostate cancer and triple-negative breast cancer.
"The research update provides robust evidence that further development of lead product candidate TroVax is still possible. These regulatory developments should allow the company to accelerate licensing discussions," says broker Panmure, which keeps a "hold" recommendation but upgrades its target price to 12 pence from 7 pence previously.
To see Oxford Bio's statement please click on [ID:nRnsF1394V]
Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net
09:52GMT 6Jul2009-Costain up on contract extension
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Shares in construction firm Costain Group (COSG.L) gain 2.1 percent after its joint venture with Galliford Try (GFRD.L) and engineering consultancy WS Atkins Plc (ATKW.L) receives a 400 million pound contract extension.
Arbuthnot remains bullish on Costain despite limited visibility impacted by global economic concerns and says the deal is likely to contribute around 4-5 percent of operating earnings beyond 2010.
The broker, which rates Costain as a "strong buy", estimates the work should contribute an average of around 36 million pounds of revenues per year to Costain between 2010 and 2015.
Galliford Try shares rise 2.1 percent; WS Atkins is down 0.9 percent.
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