Premier Farnell Gains as Goldman Recommends Buying: London MoverNatasha Doff
Premier Farnell Plc climbed 2.8 percent after Goldman Sachs Group Inc. raised its recommendation to buy, saying the U.K. supplier of electronic and industrial products stands to increase market share.
The shares rose 5.80 pence to 216.70 pence, for the second-biggest gain on the FTSE 350 Index today. That took the advance to 11 percent this year, giving the company a market value of 804 million pounds ($1.3 billion).
Goldman upgraded its recommendation from neutral because Premier Farnell “is well positioned to take advantage of improving market conditions,” analysts led by Charles Wilson said in a note today. It “stands to gain market share from small ‘mom and pop’ competitors and improve sales due to its extensive product offering in conjunction with its improved online platform.”
Premier Farnell will focus on segments including nanotechnology, medical, lighting and energy rather than industries such as defense, which are affected by spending cuts, Chief Executive Officer Laurence Bain said in an interview on Sept. 19.
Economic confidence in the euro area rose in September, adding to signs the single-currency bloc’s recovery is gaining momentum. An index of executive and consumer sentiment rose for a fifth month to 96.9 from a revised 95.3 in August, the European Commission in Brussels said today.
U.K. consumer confidence advanced to the highest in almost six years in September, and labor productivity rose for the first time in two years in the second quarter, led by the manufacturing industry.
Of 17 analysts who follow Premier Farnell and share their findings with Bloomberg, nine recommend buying the stock, four suggest holding and four advise selling. The average 12-month price target for the stock is 245.55 pence, based on 11 estimates, implying a potential gain of 13 percent.