Glencore is still worth buying, according to analysts at Deutsche bank, even though concerns over its liquidity position allied to lower energy prices have knocked its shares 25% recently.
Deutsche Bank concedes Glencore does use large lines of credit to run its trading operations but adds any funding concerns are misplaced.
UBS has updated its subsector preferences for traditional UK life insurers following the 2022 results – and Aviva PLC (LSE:AV.) now tops its list, followed by M&G PLC (LSE:MNG), Phoenix Group Holdings PLC (LSE:PHNX), and Legal & General PLC.
The Swiss investment bank sees Aviva as the best-placed in volatile markets due to its diversified business model, including both life and non-life insurance.
Liberum's latest note on the UK banking sector provides insights on the profitability and risks faced by companies in the sector – and, crucially, it suggests shares may not be as cheap as previously believed.
The broker highlights the unique interest rate environment of the past decade, in which the traditional bank-interest rate relationship broke down due to zero interest rate policies (ZIRP).
Jefferies repeated its ‘buy’ advice and 190p a share price target for BT Group PLC (LSE:BT.A) in the wake of a regulatory stand-off that wiped £1.3bn off the value of the business.
Ofcom has delayed a decision on a new wholesale broadband deal from BT’s subsidiary Openreach for two months.
The long-term investment case remains firmly intact for Keywords Studio despite some short-term volatility since the Irish video game industry services provider released its 2022 full-year results and comments around the outlook and broader market weakness, according to analysts at Liberum.
“With the shares trading on a CY23 P/E of 25x, a 33% discount to its five-year average, we believe the current share price offers good value,” analysts said in a note to clients.
Prudential and Beazley are ways to take advantage of the sell-off in insurance stocks following the collapse of SVB, analysts at JP Morgan suggest.
Concern over the sector has ranged from liquidity, mark-to-market losses on bonds and asset risk.
H & T Group’s pawnbroking business and its growing ancillary gold buying and forex products have unique growth opportunities as other small-sum, short-term lenders withdraw from the market, suggests research group Hardman.
The pledge book was up over 50% in 2022 and the lessening of legitimate competition at a time of heightened demand means this increasingly dominant franchise is expected to fuel strong earnings growth.
The Restaurant Group (TRG), the owner of restaurants such as Wagamama and Frankie & Benny’s has made a better-than-expected start to 2023, Shore Capital believes.
Revenues were up 8% in the first eight weeks of the year, compared to predictions of 3%-4%.
Interest in luxury fashion is fading, said RBC, with sporting goods coming into focus.
Investor sentiment has normalised across luxury brands, with the market impacted by China’s growth compared to the rest of the world, the speed of Chinese travel recovery, pricing support and margin sustainability at LVMH and Richemont.
Copper and zinc are out of favor with analysts at Citi, who say they are “incrementally bearish” on the metals over the coming months.
“Our updated view is for further downside in copper to $8,000/t from $8,500/t, and $2,700/t for zinc from $2,900/t over the next three months,” analysts wrote in a note to clients.
Copper demand is set to grow from renewables and electric vehicles (EVs) as pillars of the energy transition but less so from EV chargers and grid upgrades despite the up to $60bln opportunity in US EV charging infrastructure, according to analysts at UBS.
“We are bullish out the outlook for copper demand from EV and renewables but have been sceptical on the materiality of the EV chargers and grid upgrades,” the analysts wrote in a note to clients.
After a major British American Tobacco PLC (LSE:BATS) shareholder urged the company to move its primary listing to the US, analysts at Jefferies said it is “a move that would make sense” and could free it from tighter UK restrictions on the cannabis market.
Close to 60% of the company’s profits come from the US, whilst only 1% is from the UK and the bank, which is headquartered in New York, believes that the British shareholder base is declining.
London Stock Exchange Group PLC (LSE:LSEG) pushed higher as analysts at UBS took a brighter view of company's Trading & Banking division.
The Swiss bank upgraded the stock to’buy’ from ‘hold’ and raised its price target 2% to £87.