STOCKS NEWS EUROPE-IMI jumps on earnings upgrade

IMI (IMI.L) shares jump 11 percent to a 14-month high of 510 pence after the British manufacturer says it will beat 2009 earnings expectations, boosting by switching more production to cheaper economies and lower metal prices.

Citi analysts raise their 2009 earnings per share forecast by 10 percent to 41.6 pence, not including a one-off pension gain of 2 pence.

"IMI is on an unchallenging P/E (price to earnings ratio) of 11 time 2009 estimates ... versus a 20-year average P/E of 12 times, implying no EPS growth from here. This looks an overly conservative valuation and we reiterate our 'Buy' rating," they say in a research note.

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