New market research showing weakening US consumer demand for soft goods has sparked analysts at UBS to reiterate their bearish view on Softline retail stocks in a report published on Monday.
Soft goods, or Softline goods, are nondurable products that are naturally ‘soft’ and are commonly used in textiles such as bedding, apparel, footwear, hats, curtains, towels, and belts.
There are a number of positive catalysts on the horizon for Endeavour Mining PLC, according to analysts at Barclays who reiterated that the stock remains its preferred precious metals equity exposure in Europe.
In a note to clients, the analysts highlighted that on May 11, it was revealed that the West Africa-focused gold miner would be included in the MSCI Standard Development Market indices, with the rebalance effective after the market close on May 31.
An in-depth analysis of Greggs PLC (LSE:GRG) sandwich prices leads investment bank Jefferies to suggest the baker's shares remain worth buying.
Prices have now increased by circa 12% since May 2020, much less than its competitors' average of around 20%, which the analysts said was "comparing favourably" from a competitive offering point of view.
Royal Mail’s woes mean things are set to get worse before there’s a chance it can get better for its London-listed parent company International Distributions Services PLC (LSE:IDS), that’s according to Liberum Capital.
The stockbroker, in a note, nudged higher its price target to 180p from 135p (current market price: 198p) whilst repeating a ‘sell’ recommendation.
S&U is still in favour with house broker Peel Hunt, which sees 20% upside to its current 3,150p target price.
Commenting after a brief trading update from S&U ahead of its AGM, the broker said that factors that suppressed growth recently should ease as the year progresses.
Mobile phone giant Vodafone will see almost no revenue growth over the next five years, according to a leading City bank.
Sales have been stalling recently and UBS predicts that by March 2028 they will be at €46.2bn annually or just 1% higher than the €45.7bn reported in its latest results a week ago.
Aviva got two cheers from the City for its latest results update, which was good on revenue growth but lacked a little on finances said two top broking houses.
Deutsche Bank noted it was a steady first quarter update, with decent operational momentum, especially in the UK life group.
Evidence of the global demand for artificial intelligence (AI) formed a large part of NVIDIA Corporation's (NASDAQ:NVDA) blowout numbers that will lead to a 25% surge to a market value of almost US$1 trillion today.
A sizeable boost was seen for the wider chipmaking sector, other AI-driven companies and the investment funds that back them, with analysts saying some of this would be related to short-covering after some recent warnings of an AI bubble.
Ryanair Holdings PLC (LSE:RYA) and easyJet PLC have both been graced with share price target upgrades from Deutsche Bank analysts, predicting the low-cost duo will remain key players in the sector's recovery.
Deutsche raised Ryanair’s share price target from €20 to €22.50, up 12.5% on Wednesday’s close, alongside anticipating a 4% 25p jump to 635p for easyJet stock.
Royal Mail’s owner International Distributions Services PLC (LSE:IDS) (IDS) still faces numerous execution risks and lacks detail in its plans, according to analysts at Deutsche Bank AG (NYSE:DB).
The investment bank rates the stock a ‘sell’ arguing its exit rate in its most recent full-year results was “weaker than expected”.
Marks and Spencer is heading back to the FTSE 100, according to Deutsche Bank, which reiterated its buy rating and increased its target price to 235p from 210p.
“The proof of the turnaround pudding is in the tasting,” said the broker, commenting on the retailer's jump in full-year profits and revenues.
AJ Bell PLC (LSE:AJB) shares rose 2% after the company nudged up its forecasts for revenues and profit margins.
The update accompanied interim results which showed turnover rose 37% to £103.6mln in the six months to March 2023, giving pre-tax profits of £41.9mln, up from £26.1mln in the same period last year.
Barclays strategists say UK and European small and mid caps (SMID) offer an attractive opportunity for long-term investors after they sharply underperformed large caps since the banking wobbles in March.
The MSCI Europe Small Cap Index is down 20% from its 2021 highs while the large cap equivalent is pretty much back at its highs. And as for the UK, the mid-caps are in focus, with the FTSE 250 down around 20% versus the FTSE 100 from the relative highs of two years ago.
RS Group’s beating on a downbeat outlook yesterday was too harsh, according to Royal Bank of Canada (TSX:RY), which sees the current price as a good entry point.
Annual results were good, but the accompanying commentary from the components distributor plus recent management changes spooked investors, says RBC and rebuilding confidence will take time.
Rio Tinto, BHP and Vale share prices all reflect iron ore prices way below current spot levels, according to broker Jefferies, which concludes the three mining giants look good value as a result.
Markets currently are pricing in a benchmark iron ore price of US$81.37/t, it says, which compares to a spot price of US$99.05 and Jefferies' own long-term forecast of US$90/t.
Drax Group's (LSE:DRX) plan to invest £7bn to convert the existing North Yorkshire biomass power plant and build two new facilities in America lacks “fundamentals”, according to CitiGroup.
“The opportunities Drax outline are largely a nice-to-have wish list with very little in the way of fundamentals to support the opportunity,” analysts from the bank said.
Expected easing in the current pressure on UK bank profit margins towards the end of the year should benefit the likes of HSBC, NatWest and Virgin Money more than Lloyds Banking.
That is the view of analysts at RBC Capital Markets, who calculate that the headwinds on net interest margins – the difference between the amount a bank earns on its loans and pays out on its deposits – are going to subside by the end of 2023 and turn into a “small tailwind” in 2024.
Consolidation continued apace in the UK property market with the take-out of one of the sector’s smaller players.
CT Property Trust PLC has agreed to be bought in an all-paper deal tabled by LondonMetric Property PLC (LSE:LMP), valuing it at £198.6 million – a 34% premium to Tuesday’s closing price.
Accesso group's latest solution Freedom underlines its growing global diversity, said broker ShoreCap and highlights the growing financial momentum.
The group saw record revenue last year through recovered demand, multiple projects with existing clients, and new wins.
Inspired has retained its buy recommendation and 20p target price from broker Liberum after it ran through the numbers of a deed of variation signed with the vendors of acquisition Ignite.
The deed provides a maximum additional earn-out of £9.25mlm, though the broker adds that this comes with what it describes as “stretching” financial targets.
Whitbread PLC (LSE:WTB), owner of Premier Inn, could see both its top-line revenues and bottom-line earnings soar in the upcoming financial year, according to JP Morgan.
The US bank upgraded its underlying earnings estimates for the hospitality group by 2.4% to £968mln for the 2024 financial year.
Shares in J Sainsbury PLC (LSE:SBRY) were downgraded by Citi as analysts reckon elevated food inflation and cost of living pressure dampen the bull case.
Removing its ‘buy’ rating and shifting to a ‘neutral’ stance instead, the US bank also cut its price target to 295p from 320p.
Jefferies has reiterated its 'buy' view on Intercontinental Hotels on the prospect of more substantial cash handouts this year
IHG told Jefferies it has not seen a slowdown "in any consumer market" even though Airbnb recently reported some softening of pricing,
BT Group PLC (LSE:BT.A) received some support for its strategy of rolling out fibre to the home as quickly as possible.
Citi said the approach is the correct one even if it temporarily derails the telco’s ability to hit free cash flow (FCF) targets.
Aviva and other UK life insurers are being mispriced because of fears over exposure to commercial property, according to the Royal Bank of Canada (TSX:RY).
Hammering home the point in what is RBC’s second note on the subject in under a week, the Canadian bank says it is crucial to delineate between direct investment in property and commercial mortgages.
ATOME’s expansion of its Villeta plant in Paraguay into fertiliser adds material long-term value and gives access to a considerable and growing market, suggests Liberum.
Baker Hughes, meanwhile, coming on board as a 6.6% shareholder, establishes a relationship with a significant player in the hydrogen value chain and validates ATOME’s strategy, it adds.
Ilika said trading for the year ended 30 April 2023 had been in line with management expectations, while final terms are being discussed over its partnership with Cirtec.
Revenue for the twelve months will be approximately £0.8mln (2022: £0.5m), with an underlying (EBITDA) loss of £7mln (2022: EBITDA loss of £6.4m).
Helium One Global has had its share price target tweaked upwards at from broker Liberum following the new CRR published today for the Tai prospect in Tanzania.
Describing the increase as “material, Liberum now puts a fair price on the shares of 20p, up from 19p, and against 7.1p, up 4%, in the market.