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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Archive

Drax, Hipgnosis, Yellow Cake and more: What brokers said today

A round up of what brokers had to say about some of London's top stocks

Analysts at Jefferies do not believe a new partnership announced between sports equipment company Peloton Interactive Inc (NASDAQ:PTON) and athletic apparel company Lululemon Athletica (NASDAQ:LULU) will boost the latter’s share price.

The two companies on Wednesday announced a five-year agreement in which Peloton, a stock not covered by the analysts, will become Luluemon’s exclusive digital fitness content provider.

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Gloomy sector news sent housebuilding shares plunging today, led by a 7% tumble for Barratt Developments PLC (LSE:BDEV), but trends are likely to improve through the autumn, says Barclays.

House sellers are increasingly cutting prices to secure deals even as the normally busy autumn selling season gets under way, data from Zoopla showed.

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Following positive trading updates from leisure companies including The Restaurant Group PLC (LSE:RTN), Hostelworld (LSE:HSW), The Gym Group PLC (LSE:GYM), On the Beach Group (LSE:OTB), Ten Entertainment Group PLC (LSE:TEG) and SSP Group plc (LSE:SSPG), analysts at Liberum believe the industry is fighting back against several headwinds which have shrunk the industry since the pandemic.

Rampant inflation, employment shortages, interest rate hikes and lower consumer spending caused many share prices of listed hospitality companies to fall, but with more and more businesses posting interims which keep forecasts intact, Liberum sees the chance for more upgrades going forward.

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Equities analysts at Shore Capital Markets are “very encouraged” after onshore UK-focused Union Jack Oil PLC (AIM:UJO) released an update on its West Newton project, in which it holds a 16.7% interest.

Union Jack confirmed on Tuesday that a variation of the permit for the West Newton B wellsite (allowing for the use of oil-based fluids during drilling and testing) was issued by the Environment Agency.

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The average person in the United Kingdom consumes more than three litres of oil per day, much of which is hidden in plastics, synthetic materials and hygiene products.

According to a study by investment bank UBS Group AG (NYSE:UBS), the average Briton uses 3.3 litres per day’s worth of oil products, through a mix of petrol, electricity and household products.

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Seemingly out of nowhere, Yellow Cake PLC (AIM:YCA) is now firmly on the radar of analysts who are watching closely to see how the uranium investment company will continue to benefit from surging prices.

The uranium investor has grabbed the attention of analysts at investment banks including Bank of America and Liberum Capital after carrying out one of the largest placings of shares on the AIM segment of the London Stock Exchange this year, raising £103 million.

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Drax Group (LSE:DRX) shares have been hit by the company’s use of factoring and other tools to improve its working capital, notes JP Morgan, but the US bank believes the 27% drop since August is taking too severe a view.

JP Morgan admits it previously underestimated the use of these tools by the power generator, which has increased, particularly in 2022.

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Hipgnosis Songs Fund Limited (LSE:SONG) has published a promised letter to shareholders about its proposed US$440 million music rights sale but the deal could be as dead as the company’s prostrate elephant logo, according to analysts.

After it missed yesterday’s scheduled publication date, the fund issued a statement late this morning saying the circular for the proposed deal with investment giant Blackstone has been approved by the UK Financial Conduct Authority (FCA) and has now been published.

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ATOME Energy PLC (AIM:ATOM) is at an inflection point that could see a re-rating of the shares in the green hydrogen and ammonia specialist, according to Liberum.

In a 10-page research note, the boutique investment bank took a closer look at ATOME's flagship project, Villeta, in Paraguay, alongside Thursday's interim results statement.

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