By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- U.K. stocks rose Monday, as shares of Associated British Foods PLC and GKN PLC pushed higher following price-target upgrades, but oil stocks struggled as crude prices once again headed south.

The FTSE 100 rose 0.4% to 6,528.04, winning back a slice of Friday's 1.1% drop.

Engineering group GKN topped the FTSE 100 on Monday, rising 3.1% after Credit Suisse said opportunities from its automotive operations "offer potential to deliver upside surprise" to consensus estimates for GKN's earnings before interest, taxes and amortization, particularly in fiscal year 2016. The price target was raised to GBP4.10 ($6.20) from GBP3.80.

Shares of Associated British Foods climbed 1.9% as Credit Suisse also pushed up its price target on the parent company of apparel retailer Primark to GBP32.50 from GBP30 ahead of the company's sales update on Thursday.

With Primark sales set to grow and ABF's sugar business "no longer the drag, we see double-digit EPS growth over the medium term," said Credit Suisse analyst Charlie Mills in a note. Earnings may grow about 15% in the 2015/16 year as ABF enters the U.S. market and sugar recovers somewhat. Primark is slated to open its first U.S. store this year in Boston.

Shire shares (SHPGF), however, gave up earlier gains, losing 0.5%. The drug maker over the weekend said it agreed to acquire NPS Pharma for $5.2 billion in cash. The move pushes Shire toward making drugs for rare conditions and bulks up its portfolio for treatments of gastrointestinal disorders. Shire late last year received $1.6 billion from a collapsed deal to be purchased by AbbVie Inc. (ABBV).

Energy stocks were in the red as crude-oil futures continued to slump following steep cuts by Goldman Sachs to its projections for oil prices. Brent North Sea crude oil for February fell 2% to below $49 a barrel, and West Texas Intermediate crude oil for February delivery (CLG5) fell more than 2% to approach $47 a barrel.

Major oil companies BP PLC (BP) and Royal Dutch Shell PLC (RDSB) fell 0.7% and 1.2%, respectively. Oil producer Tullow Oil PLC gave up 0.3%, and BG Group PLC (BG) lost 1.6%.

Meanwhile, shares of home builder Taylor Wimpey PLC fell 0.9%. The company said in its trading update that it enters the new year with a "record" order book that has risen in value by 12%, driven largely from private reservations. The company also said for 2015 is beginning with "a lower rate of price growth" that should foster a more sustainable housing market.

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