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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Tesco, HS2 fallout, Aviva and more: What brokers said today

A summary of what City brokers have said about some of London's top stocks

Intel Corporation (NASDAQ:INTC) revealed its plans to spin out its Programmable Services Division, which could help the company tap into a multibillion-dollar market opportunity.

Starting January 1, 2024, Intel plans to operate its Programmable Solutions Group (PSG) as a stand-alone business but will pursue an initial public offering (IPO) over the next two to three years.

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On Tuesday, Carnival PLC (LSE:CCL) was downgraded by Peel Hunt which argued that despite a record quarterly profit it was not expecting to see any more updates which could propel the stock forward until next year.

A day later, the cruise line company can feel a little bit more upbeat as analysts at Shore Capital have decided that the strong third quarter, along with a healthy pipeline of bookings pushing into the next, are enough to upgrade the stock.

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Legal & General Group PLC could lack a spark until its new boss arrives in the New Year, according to Jefferies, whcih has downgraded the insurer to 'hold' from 'buy'.

“Whilst Legal & General's long-term prospects remain attractive, we believe there are limited near-term catalysts until the incoming CEO updates the market on his strategy,” it said.

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Deutsche Bank analysts have slashed their price target for Boohoo Group PLC (AIM:BOO) after the retailer was hit by losses due to a slump in sales.

Boohoo said yesterday that its half-year revenue shrank 17% to £729.1 million, posting an adjusted loss of £9.1 million for the period compared to a profit of £6.2 million a year earlier.

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Halma has seen its share price target slashed by analysts at Swiss bank UBS even though they acknowledge that as companies go, it is better insulated than most against an adverse economic cycle or even recession.

Higher interest rates will put a cap on Halma’s M&A activity given the marginal cost, argues UBS, but the flip side is that this should lead to good progress by the engineering conglomerate on deleveraging.

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The UK water companies, Severn Trent PLC (LSE:SVT), Pennon Group PLC (LSE:PNN, OTC:PEGRY) and United Utilities Group PLC (LSE:UU.), still only offer "unattractive" proposed returns and share prices now reflect investor concerns, says JPMorgan.

This follows the sector publishing their business plans on Monday, which was summed up by the investment bank's analysts as showing that "there is a growth story for the sector, with more investment needed for environmental performance to improve".

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Vistry PLC shares fell 5% to 791p, hurt by a downgrade by UBS to 'sell' from 'neutral'.

The Swiss bank is cautious that the recently presented business plan can be executed because it assumes record volumes (>20,000) for any single UK housebuilder to have ever delivered at a record level of ROCE of 40%.

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Pearson’s US fortunes might be turning up according to analysts at Deutsche Bank, who have been looking at the trend of US college enrolments.

Applications for Federal Student Aid are up says the bank, which is a good sign for Pearson’s US exams and courses business after a long period of decline.

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Tesco PLC (LSE:TSCO) lifted its full-year profit guidance on Wednesday and analysts at Shore Capital believe that should the average customer’s economic situation continue to improve more upgrades should follow.

The supermarket group's upgraded operating profit forecasts of between £2.6 billion and £2.7 billion, up from £2.5 billion previously, led analysts at the London broker to lift their full-year pre-tax profit guidance by 3%.

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The future of HS2, the high-speed train line planned between London, Manchester and Birmingham, hangs in the balance today.

The UK prime minister is expected to drop plans for a northern section of the HS2 line during his speech at the Conservative party conference in Manchester, which ends today.

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The turnaround at online retailer ASOS PLC under boss José Antonio Ramos Calamonte is “underappreciated", according to UBS.

It believes the retailer is addressing the “key areas” of underperformance such as basket economics, assortment management, sourcing and inventory management through its 'Driving Change' plan.

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SSE PLC's (LSE:SSE) shortfall in renewable energy production was mitigated by a strong performance in its flexible thermal division, highlighting the generator’s well-balanced model, analysts say.

Following an update from SSE warning of lower earnings at the half-year stage, broker Peel Hunt remains confident on the generator.

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Shares in Aviva PLC jumped 2.2% to 383.90p after broker Jefferies upgraded to 'buy' from 'hold' with a 480p price target.

“We forecast Aviva to deliver a best-in-class capital return yield, underpinned by excess capital and the strongest free cash flow amongst peers,” it said.

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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK