STOCKS NEWS UK-ARM up; broker sees Google effect
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11:01GMT 10Jul2009-ARM up; broker sees Google effect
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Shares in ARM (ARM.L) gain 3 percent following news earlier this week of Google Inc's (GOOG.O) bid to compete with Microsoft Corp's (MSFT.O) windows operating system with its own Chrome Operating System, which Goldman Sachs says should help ARM-based competitors.
Goldman Sachs sees implications not only for Google and Microsoft, but also for the hardware space and semi companies such as Intel (INTC.O), ARM, and ARM-based chip providers as the Chrome OS runs on ARM as well as x86 chip.
"Google's entry into the market could represent a threat to Intel and x86," says the broker.
The broker says this could open "the door to ARM-based competitors including Qualcomm, Texas Instruments, Freescale, Nvidia, Marvell and Broadcom, thereby accelerating ARM's potential in the fast growing product categories of Netbooks."
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10:46GMT 10Jul2009-Punch Taverns up; Numis upbeat
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Shares in Punch Taverns (PUB.L) gain 4.4 percent as Numis repeats its "buy" rating following an analyst meeting with the British pubs company on Thursday, saying it sees positive catalysts going into 2010.
Numis says it sees revenues and margins improving helped by better weather, a shift in sales mix, lower utility costs and higher staff productivity.
The broker says announcements on debt reduction in late-August and November should be a driver for the shares, while a possible doubling in disposals of pubs will leave a better quality business and a stronger cash flow.
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10:21GMT 10Jul2009-JJB shares fall as Goldman cuts price target
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Shares in JJB Sports (JJB.L) fall 6 percent to 19.75 pence after Goldman Sachs slashes its 12-month price target on the British sports retailer to 25 pence from 42 pence.
"We still forecast that the company will be loss-making for the next two years, recording its next profit in full-year 2012. However, the magnitude of our forecast losses is now larger, predominantly as a result of the lower sales densities in our assumptions," the broker said in a research note.
JJB shares have been under pressure this week after it confirmed on Saturday it was considering an equity raising.
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Reuters messaging rm://james.davey.reuters.com@reuters.net
09:23GMT 10Jul2009-Allied Gold up on "excellent" assay
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Shares in Allied Gold (AGLD.L) gain over 9 percent after reporting assay results from its 100 percent owned mine at the Pigibo Prospect on Simberi Island in Papau New Guinea, which broker Ambrian describes as "excellent".
"These results are excellent as not only are they well above the global resource grade, but they also surround what was a small, low-grade area of mineralisation, and thus have the potential to add one to two hundred thousand ounces of oxide material to the resource," says Brock Salier, Ambrian analyst.
The broker retains its "buy" rating citing a number of positives including a likely increase in oxide resource potential and M&A activity alluded to in the likely increase in oxide resource potential and M&A activity alluded to in the recent trading report.
Ambrian estimates Allied Gold will break even by 2011 with and earnings per share forecast of 1.8 pence.
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09:11GMT 10Jul2009-Liberty Intl rises as UBS ups to 'neutral'
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Shares in Liberty International (LII.L) gain 1.6 percent in a weaker broader market, supported by an upgrade to "neutral" from "sell" by UBS on a valution perspective, with its target price left unchanged at 380 pence.
UBS points out that Liberty's share price has pulled back 11 percent since its peak on June 11, compared with a 7 percent fall by the FTSE 350 index and a 10 percent decline by the UK real estate sector.
The broker says in the sector, at current prices, it favours British Land (BLND.L) and Corio (COR.AS) as its preferred European exposure and remains cautious on Great Portland Esates (GPOR.L) and the Spanish real estate companies.
British Land shares add 0.8 percent, Great Portland is up 1 percent and Corio gains 0.5 percent.
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08:24GMT-Pearson gains; Credit Suisse upgrades
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Shares in Pearson (PSON.L) take on 1.8 percent after Credit Suisse raises its rating for the publishing group to "outperform" from "neutral", mainly on valuation grounds.
The broker notes that Pearson shares have fallen 18 percent over the last quarter, underperforming the market by 24 percent with media valuations having converged as the market has tarred all media with the same brush.
Credit Suisse believes it is time to differentiate and says Pearson becomes one of its 'fallen angels' that have derated with the sector to well below historical trading ranges.
The broker says professional publishers, such as Pearson, with low expectations but minimal structural impact should perform well through the first-half reporting season.
Credit Suisse raises its target price for Pearson to 680 pence from 630.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
07:46GMT 10Jul2009-Bodycote shares sink on profit warning
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Bodycote (BOY.L) shares drop 15.4 percent after the British engineer says it will miss analysts' 2009 consensus earnings forecast if demand remains at current depressed levels.
"Today's trading update for H1 2009 is substantially worse that we would have expected and we anticipate that our earnings estimates for this year, and probably next year too, will be reduced by at least 25 million pounds in profits and 10 pence in EPS," says Arbuthnot analyst Michael Blogg.
"In the medium term, we expect the current extreme shakeout in manufacturing industry to generate a trend towards the use of outsourced services, such as those provided by Bodycote," he adds, though in the short term he is removing his "buy" recommendation on the stock.
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