Brokers have woken from their shock at the outcome of the Brexit vote and come up with lots of potential winners now that the UK is set to leave the European Union.
First out of the traps was UBS, which identifies nine potential winners and after today’s early morning bloodbath they much cheaper than when identified by the Swiss bank.
As you might expect, currencies play a major part in the selection with the pound tanking already to a 31-year low, though it had started to pick up again.
The Swiss bank picked out a total of fifteen companies listed in the UK and Europe which it says are ‘Brexit winners’ but have yet to outperform the rest of the market.
It noted that these companies benefit from having a combination of lower UK sales exposure and the potential for a boost to profits due to the weaker British currency.
The ‘winners’ identified by UBS are as follows:
Arm Holdings Plc (LON:ARM), up 0.5% at 1,024p.
Liberum also added to that list, speculating which companies it thinks are best-positioned to take advantage of the leave vote.
Similar to UBS’s picks, a lot of these companies have a natural hedge against a weaker British pound.
Plus500 Ltd (LON:PLUS), down 2.43% at 603.5p.
It was relatively quiet on the broker front this morning given the EU referendum results with only a few downgrades, but one firm bucked the trend.
Liberum noted that the fertiliser development firm has reduced the capex required to build its polyhalite mine by 18%, from US$3.6bln to US$2.9bln.
Liberum adds that the firm continues to make good progress on its financing.
Elsewhere, there were a few downgrades from brokers before the news filtered through confirming that the UK had voted to leave the EU.
International Consolidated Airlines Group SA (LON:IAG) was also downgraded from ‘outperform’ to an ‘underperform’ rating by RBC Capital Markets, as the firm warned on profits following the EU referendum results.
Shopping centre operator Intu Properties PLC (LON:INTU) saw its price target cut by Deutsche Bank, while oil services provider Petrofac Ltd (LON:PFC) also had its target price cut by Barclays Capital.