Interserve "buy," target price raised

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analysts at Panmure Gordon maintain their "buy" rating on Interserve Plc (IRV-GBX). The target price has been raised from 415p to 450p.

In a research note published this morning, the analysts mention that the recent report in the Financial Times, which points towards an informal approach for the acquisition of Interserve’s Industrial Services division, is not surprising. The upward revision in the target price primarily reflects a re-rating of the company’s Construction business, the analysts say. The trading at the company’s business segments, excluding the Industrial Services division, is tracking well, Panmure Gordon & Co adds.