STOCKS NEWS UK-Britvic sparkles on summer sales boost
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07:47GMT 14July2009-Britvic sparkles on summer sales boost
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Shares in Britvic (BVIC.L) rise 4.2 percent as the soft drinks maker says it expects full-year earnings before interest and tax (EBIT) to exceed market forecasts after strong trading in the third and fourth quarter to date.
JP Morgan lifts its full-year EBIT forecast to 108.8 million pounds, from 104.9 million, and its earnings per share forecast by 5 percent in 2009 and 3 percent thereafter after the update from the firm, whose brands include Tango and Robinsons.
"Clearly this growth is driven by a very positive weather dynamic when contrasted with the softer comparative period," says analyst Mike Gibbs, adding it also reflects Britvic's ongoing superior execution versus competitors.
Altium also raises its EBIT estimate to about 110 million pounds, from 101.6 million, saying that while Ireland remains challenging, the British and International businesses continue to perform very strongly.
For more click on: [ID:nLE283758]
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
07:34GMT 14July2009-Vodafone slips on UBS downgrade
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Vodafone (VOD.L) is the biggest single drag on the UK blue chip index .FTSE, down 1.9 percent, underperforming the telecoms sector .SX8P which is off 0.2 percent, after a downgrade from UBS to "neutral" from "buy" and a cut in price target chills appetite for the telecoms giant.
UBS says in a note that economic pressures, market share loss and F/X effects have combined to put pressure on earnings estimated for the telecoms operator, and that earnings will decline 11 percent this year.
"We believe deteriorating fundamentals and earnings momentum could result in Vodafone being the classic value trap," the broker says. "Given our expectations for poor (key performance indicators) and cuts to consensus estimates, we introduce a short-term "sell" rating."
UBS also reduces its price target to 115 pence from 150 pence. Vodafone is currently trading at 112.8 pence.
Reuters Messaging rm://simon.falush@reuters.com@reuters.net
07:23GMT 14Jul2009-Melrose gains; debt, trading reassure
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Shares in Melrose Plc (NYN.L) rise 7.5 percent after the industrial investor says it has cut net debt by 127 million pounds since the start of 2009 to 416 million pounds and trading is in line with expectations.
Investec analyst Chris Dyett says this beats his forecast of net debt of 486 million pounds for the year-end, while a further reduction in the net debt to EBITDA ratio means H1 EBIT is running ahead of his forecast.
"The market was a bit worried about their gearing," he says. "It's not a profit warning like Charter or Bodycote, so that's reassuring too."
To see Melrose's statement click on [ID:nRnsN5945V]
Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
