Deutsche Bank sees Talktalk Telecom Group PLC (LON:TALK) as “one of the best European Telco stocks this year” even though it has had a downgrade to guidance, has had a dividend cut and is facing tough competition.
In a recent note analyst Robert Grindle highlighted that TalkTalk is a beneficiary of the regulatory tightening on BT Group, but it has not been involved in the ‘fibre land grab’.
Wednesday’s second quarter results are expected to shed light on the group’s enterprise business which is seen as a catalyst.
“Q2 will likely provide more details of TalkTalk Business unit which is growing (Enterprise revs. +3.1% in Q2 ex volatile carrier revenues) as well as update as to how its MVNO model will be replaced with a distribution deal,“ Grindle said.
The German bank reckons TalkTalk will report a 4.2% decline in total revenue, with earnings seen 30% lower.
Jefferies trims price target for Premier Foods ahead of interims
Interims from Premier Foods should reveal a “sprightlier” second quarter on the top-line front but lower profits, according to broker Jefferies.
The broker expects sales to be modestly down from last year’s £48mln at £47mln, with pre-tax profit dipping from £26mln at the halfway point last year to £23mln.
“The big picture - of tough markets and nip and tuck on share - doesn't change and we apply some incremental caution to our top line forecasts. We welcome the arrival of new chair Keith Hamill, who has a rich but complex agenda to prosecute,” Jefferies said, as it trimmed its price target to 43p from 46p.