STOCKS NEWS EUROPE-All Leisure gains after update

Shares in All Leisure Group (ALGP.L), which operates destination-led niche cruises, gain 2.6 percent after the firm announces a strong finish to the year, with Panmure Gordon initiating coverage of the stock with a "buy" rating.

The firm says for the year ended Oct. 31 2009, it expects to modestly exceed expectations for group pre-tax, pre-derivative profits of about 4 million pounds ($6.66 million). [ID:nRnsJ2297C]

"The group's attractions are its strong balance sheet, cash generation and potential to substantially grow dividend payments in the absence of any significant acquisition and investment opportunities," Panmure says in a note.

The broker says it forecasts pretax profit of 4.3 million pounds for financial year 2009 and over the following two years, it forecasts earnings will grow 39 percent, heavily weighted towards growth in financial year 2011.

Panmure has a 90 pence target price for the firm.

Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net

($1=.6002 Pound)