STOCKS NEWS EUROPE-IMI shares rise as Jefferies ups target price

Engineering company IMI Plc (LSE: IMI.L - news) rises as much as 1.3 percent after brokerage Jefferies increased its price target on the stock to 1,590 pence from 1,405 pence, citing a strong balance sheet and the potential for earnings-enhancing acquisitions.

Shares in the company were up 1.2 percent at 1,552 pence at 1139 GMT, making the stock one of the top percentage gainers amongst FTSE 100 companies.

"A new chief executive brings with him expectations of acquisition activity and efficiency improvements ..., whilst the disposal of Beverage Dispense and Merchandising leaves a very high margin business with a robust balance sheet," Jefferies analyst Andy Douglas says in a note to clients, reiterating a "hold" rating.

Mark Selway, appointed as chief executive in September, is expected to take over from Martin Lamb at the annual general meeting this year.

IMI, which specialises in fluid control systems such as valves and beverage dispensers, recently completed the sale of its beverage business to Berkshire Hathway-owned Marmon Group. The company is expected to return 620 million pounds from the sale to its shareholders.

Reuters messaging rm://aashika.jain.thomsonreuters.com@reuters.net