Glencore PLC (LSE:GLEN) and Teck Resources Ltd (TSX:TECK.B) are each winners in the former’s strategic acquisition of Elk Valley Resources (EVR) deal, Teck’s coal business, according to analysts at Jefferies.
“(A) Glencore acquisition of EVR makes sense strategically and economically, and a sale of EVR should be a significant positive for Teck,” Jefferies wrote following news of the finalized deal.
Bank results in the recent third quarter season were a mixed bag, says Shore Capital, but still good enough for the broker to retain buy recommendations across the sector.
Good news on credit quality was offset by some disappointment on net interest margin and outlooks were a little more cautious than expected prompting ShoreCap to trim forecasts.
Investment trusts across a range of sectors have been the leading risers on the London stock market this week, helped by the recent drop in gilt yields picking up pace dramatically.
It also came as the gap between investment trust share prices and the value of their net assets was calculated last week to have widened to the largest discount seen since the 2008 financial crisis.
German meal-kit delivery company HelloFresh has not impressed Deutsche Bank analysts with its downwardly revised revenue and profit guidance.
It was “not the (fourth quarter) we were expecting”, said the bank’s analysts, who moved the Frankfurt-listed company’s shares down from a 'buy' to a 'hold' rating.
Hotel Chocolat Group PLC (AIM:HOTC) could “flourish” with the support of a bigger parent company such as Mars, according to analysts.
The chocolatier has had a troubled couple of years, recording a 10% slump in sales in the year to July and implementing a cost-base reduction.
Greencoat UK Wind PLC (LSE:UKW) (UKW) recently announced an increased dividend to 10p per share and a significant share buyback programme.
The new dividend represented a 14.2% increase on the 2023 target that the board had set and implied a forward yield of 7.1% (2 Nov), notes research house Kepler.
Aviva PLC (LSE:AV.)’s upbeat tone in this morning’s update and a shift towards more capital-light lines should support a re-rating, according to analysts at US bank Jefferies.
The bank noted Aviva reiterated its 5-7% operating profit growth guidance for 2023 despite higher-than-normal weather claims in Canada.
Infrastructure funds’ share prices bounced this week after better-than-expected US inflation data sent gilt yields into a spiral, surprising analysts by the extent to which share prices of investment trusts are being moved by gilt and bond yields.
Stifel analysts, in a research note on Wednesday, suggested there was room for further recovery, if inflation continues to stabilise and gilt yields decline further.
Close Brothers Group PLC (LSE:CBG) hailed the resilience of its banking business in the first quarter of its new financial year – though the Winterflood market-making operation is continuing to struggle in the face of some tough headwinds in the equity trading arena.
The latter posted a £2.5 million loss for the three months ended 31 October, while the former saw its loan book increase 7.5% year on year to £9.8 billion, while the bad debt ratio was steady at 1%.
Shares in Burberry Group PLC (LSE:BRBY) fell 8% to 1,605.5p, the lowest in over a year, after the fashion group warned that if the recent global slowdown in demand for luxury goods continues it is unlikely to hit its full-year revenue targets.
Like-for-like (LFL) sales growth in the second quarter plunged to just 1% compared to 18% in the first three months, half-year results showed, with growth in all regions slowing.