Battery recycler Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT) may be undervalued, but problems at Barrambie – a mining project it runs in Australia – might eat into gains it makes from improving lithium yields, according to analysts.
Research analysts at stockbroker Cavendish slashed their target price, the share price they believe would reflect fair value, for the mining and battery recycling company this week.
UK equities were downgraded by Citigroup in its quarterly strategy update, though the benchmark FTSE 100 index is seen as "cheap" and forecast to rise by the middle of next year.
The bank said the economy is "approaching an inflection point, with tailwinds from supportive fiscal policy and better-than-expected trade outturns running their course" but headwinds associated with tighter monetary policy "now building momentum, with unemployment increasing".
'Sell' recommendations on BHP Group Ltd (LSE:BHP, ASX:BHP) and Rio Tinto PLC (LSE:RIO) shares have been removed by UBS as it sees the iron ore price stabilizing in the near future.
Both mining giants have been upgraded to a 'neutral' rating, given the bank's expectation that iron ore prices will hold within the $100-130 per tonne range over the next six months.
Citi has jumped back into covering Vodafone Group PLC (LSE:VOD) ahead of the British multinational telecoms giant’s half-year results on 14 November.
Vodafone’s interims come with a lot of baggage, with a merger with 3 being held up by the regulators, strategic investors upping their stakes, and ongoing talks of getting rid of its Spanish business.
JD Wetherspoon PLC (LSE:JDW)’s full-year trading statement highlighted “the continued resilience of the hospitality sector and its recovery from the pandemic,” said analysts at Shore Capital Markets.
In the 52 weeks to ended July, revenue rose 10.6% to £1.9 billion from £1.74 billion the year before, while like-for-like sales increased by 12.7%.
Energy is a sector where the outlook sees investment banking strategists differ wildly.
In Citigroup's quarterly equity strategy update, the bank said it sees increased chances of a US soft landing supporting cyclical sectors, with the energy sector being the main exception.
Effective bans on smoking, similar to that proposed by Prime Minister Rishi Sunak earlier this week, will be difficult to introduce in many countries, Barclays analysts have said.
Under the proposed plans, those born in or after 2009 would be unable to ever legally purchase cigarettes in the UK - so essentially as they grow up, the smoking age grows with them until no one can buy the products.
Barclays has taken a look at the options for Metro Bank Holdings PLC (LSE:MTRO) as reports continue to emerge regarding its financing options.
Shares in the under-pressure lender have bounced back 20% today after being mauled on Thursday on reports it needed to shore up its finances.
Investment banks say the coming third-quarter earnings season could either spell doom for equities and a big rotation to bonds, or else trigger a modest rally into the year-end, depending on how it goes.
Barclays equity strategists said that, despite the magnitude of the recent bond sell-off spooking stock markets, equities are still beating bonds so far this year.
THG PLC (LSE:THG) shares are motoring today and there could be more to come, according to analysts at Bank of America.
The bank has set a 125p price target and reiterated a 'buy' rating, helping drive shares 5.2% higher to 69.08p.