STOCKS NEWS UK-Cyprotex up as H1 profit jumps 179 pct
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09:08GMT 12Aug2009-Cyprotex rises as H1 profit jumps 179 pct
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Shares in British drug-testing company Cyprotex PLC (CN8.L)> rise 5.4 percent after it posts a 179 percent rise in first-half pre-tax profit and as analysts at Noble welcome the company's moves to reduce dependency on its largest customer by growing several other accounts.
"We continue to view Cyprotex as an attractive, undervalued recovery play on the rise in strategic outsourcing in the drugs industry, with no exposure to clinical risk," says Noble analyst Stefan Hamill in a note to clients.
Hamill says he sees room for Cyprotex shares to more than double in value given that his discounted cashflow valuation of 11 pence per share is well above Tuesday's closing price of 4.6 pence.
He cuts his full year core earnings forecast to 1.2 million pounds from 1.4 million pounds but says the company is still trading at a 40 percent discount to peers on a price-to-earnings basis and highlights the fact that new management at the company should help it win further contracts.
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09:02GMT 12Aug2009-Micro Focus down after update
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Shares in Micro Focus (MCRO.L) fall 2 percent as Numis cuts its rating to "add" from "buy", after the software group says, in a first-quarter update, that trading across the group is "broadly" in line with management estimates.
The broker says in its view, "the use of broadly tends to imply slight caution".
"We feel that our view that licences could be flat overall this year continues to represent a sensible base case," Numis adds.
Numis has a 470 pence target price on the stock and says, "key risks are the IT spending/economic backdrop, currency movements, and the potential loss of the Borland Software BORL.O deal".
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08:38GMT 12Aug2009-Smurfit Kappa price rise fuels shares
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Shares in Smurfit Kappa (SKG.L) (SKG.I) jump 3.5 percent after the Irish packaging group says it will increase container board prices from September in a boost for future profits.
"It's not surprising that they are up, the passing on of the pricing increase should be good for margins going forward and their outlook was reasonably upbeat," said one Dublin-based dealer.
"The shares have a good run-up since mid-July, they are up roughly 30 percent since then," he said. "Short-term, I think they look a little overdone but so does everything at the moment."
Smurfit, which also posted a smaller-than-expected fall in second quarter core profit on Wednesday, was the second-highest gainer on the main index .ISEQ.
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08:38GMT 12Aug2009-Bowleven up on farm-out deal, price target hike
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Shares in Bowleven BWVN.L rise 10.7 percent after the oil and gas group agrees to a farm-out deal with energy trading company Vitol Group on the Etinde Permit in Cameroon, leading analysts to raise the group's price target.
Vitol will acquire a 25 percent stake in the permit in return for $100 million funding of the work programme, with an option for a further 25 percent stake.
"Bowleven investors can now look at the company's broader prospects across the Etinde permit. We raise our target price to 125 pence from 84 pence, based upon the implied value of Wednesday's transaction on Bowleven's portfolio," says Evolution analyst Richard Griffith.
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08:16GMT 12Aug2009-Grainger jumps as house sales rise, KBC upgrades
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Shares in Grainger jump 10.5 percent, rising for the fourth consecutive session in a row, after Britain's largest residential landlord says market conditions are improving, prompting KBC Peel Hunt to raise its rating to "buy" from "hold".
The broker calls Wednesday's trading statement from Grainger "reassuring".
"Grainger again trades out of the corner, and notwithstanding the company's assumed corporate target status, presents good value," it says.
For more see [ID:nLC122559]
Reuters messaging rm://nicholas.vinocur.reuters.com@reuters.net
07:56GMT 12Aug2009-Balfour Beatty up on robust H1
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Shares in construction firm Balfour Beatty (BALF.L) rise 6.8 percent, the biggest gainer on the FTSE 100 .FTSE, as the company reports a 14 percent jump in first half pretax profit and ups its dividend.
"Another robust set of results from Balfour Beatty once again highlighting the benefits of a balanced business model serving a range of international infrastructure markets. Overall the group is on track for a strong second half," Cazenove says in a note.
Its peers in the DJ Stoxx Construction Index .SX0P fall 0.3 percent.
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