*

Hitt og þetta 14. febrúar 2006

DJ MARKET TALK: Merrill Upgrades Rolls Royce To Buy

[Dow Jones] Merrill Lynch ups Rolls Royce (RR.LN) to buy from neutral, raises '06 EPS to 25.6p from 25.4p and '07 to 28.5p from 28p. Notes 100% of group profits came from non-cyclical businesses and reckons the stock should be rated accordingly.

"We believe..the best comparisons are the business services companies," it says. "Using Capita (CPI.LN) and Serco (SRP.LN) as comparisons, we get valuations for Rolls-Royce of between 501p and 609p." Shares trade +2.4% at 437.75p. (DWE)