ugl is back in town, page-5

2327 GMT [Dow Jones] STOCK CALL: UBS upgrades United Group (UGL.AU) to Buy from Neutral after UGL wins Melbourne rail contract in consortium with Hong Kong's MTR and John Holland. UBS estimates value of contract to impact profit by A$8 million-A$10 million annually, raises 2010, 2011 forecasts by 2%-4%. "If the consortium operates the franchise successfully and increased funding for maintenance is forthcoming, we would expect considerable growth in earnings over the life of the franchise," UBS says; raises 12-month price target to A$10.50 from A$10.00. UGL last at A$9.75. (ILM)