MERRILL Lynch believes that MFS Technology will enjoy a strong boost from demand in new 'iconic mobile phones'.

'MFS is involved in several of the high-volume programmes and as a result of the favourable product mix, we have raised our margins and earnings estimates,' it adds.

Merrill has raised its call on MFS to 'buy', with a price target of 77 cents.

MERRILL LYNCH, Nov 22

Rating: BUY