VT "buy"

02/20/07 - Panmure Gordon & Co

LONDON, February 20 (newratings.com) - Analysts at Panmure Gordon maintain their "buy" rating on VT Group Plc (VTG-GBX). The target price is set to 535p.

In a research note published yesterday, the analysts mention that according to a recent article in The Times, the negotiations on shipbuilding between VT and BAE would be concluded in the upcoming five weeks. The analysts add, however, given that any deal would be subject to the approval from the EU and the UK government, the negotations would not be completed for a minimum of three months post the initial announcement. VT is best positioned to win the Trinidad OPV contract worth nearly £100 million in the sector, Panmure Gordon adds.