Hartshead Resources (ASX:HHR, OTC:PGNYF), an Aussie-listed North Sea gas field developer, has landed a novel funding deal which one City broker reckons is worth nearly four times the company’s market valuation.
A funding solution agreed with joint venture (JV) partner RockRose gives Hartshead optionality whilst, crucially, giving the financial greenlight for the partners to advance the Somerville and Anning gas fields into development.
Diageo PLC (LSE:DGE) is still getting downgrades following its warning last month, with both RBC and Deutsche Bank suggesting there is more disappointment to come from the beer and spirits group.
With its 5-7% revenue growth guidance under threat, the 5-7% profit growth goal is likewise too high, says RBC, adding that’s before even considering the prospect of additional excessive inventory in the supply chain.
RBC Capital has raised its earnings per share (EPS) forecasts and price target (PT) for Associated British Foods PLC (LSE:ABF) (ABF), citing optimism for the company's prospects in its Primark and Sugar divisions.
The investment bank, which includes ABF in its Top 30 Global Ideas list, believes Primark has improved its offerings and will benefit from gross margin tailwinds in the fiscal year 2024 (FY24).
US investment firm Citi has proposed that QinetiQ Group PLC (LSE:QQ.) could greatly benefit from a share buyback programme.
This suggestion comes in response to the defence contractor's share price underperformance this year.
Ryanair and Wizz Air Holdings PLC (AIM:WIZZ) are flying in different directions, according to analysts at Deutsche Bank.
Central Europe-focused Wizz is downgraded to a 'sell' with its target price slashed to 1,550p from 2,850p, while Dublin-listed Ryanair gets a healthy target upgrade to €24.50 from €21.00.
Shore Capital Markets has revised its financial forecasts for Cornerstone FS PLC (AIM:CSFS) upwards following “another smashing trading update” from the foreign exchange company.
Cornerstone has consistently outperformed expectations, with Monday’s unscheduled trading update indicating a significant surge in revenue and adjusted earnings.
Zinc Media Group PLC (AIM:ZIN), the TV production group behind 'Putin vs The West' and 'Bargain Loving Brits', has seen its share price gently tick up in the wake of last week's trading statement in which it revealed both revenues and the order book were at record levels.
Showing resilience in the face of some stiff industry headwinds, Zinc delivered sales to be recognised in the current year of around £38 million (with still a few weeks left), surpassing last year's £30 million and exceeding the September forecast by £3 million.
DS Smith PLC (LSE:SMDS) rose 2.3% after analysts at Barclays upgraded the stock to ‘overweight’ from ‘equal weight’ and raised its price target.
The broker said DS Smith is one the cheapest stocks in global packaging currently and it expects a volume recovery to drive a multiple re-rating.
BT Group PLC's (LSE:BT.A) share price could more than double, according to JPMorgan, which thinks 2024 could be a “break-out” year for European telcos.
The investment bank’s bullish sector stance is based on price increases which imply upside risk to consensus, EBITDA growth, free cash flow increases, “best-in-class" EPS growth, falling interest rates and prospects for further consolidation in the sector.
Wizz Air Holdings PLC (AIM:WIZZ) reported a strong increase in passenger numbers, capacity and load factor in November.
The budget airline operator said it carried 4,760,154 passengers, representing a 29.3% increase compared to November 2022, at a load factor of 88.4%.
Rolls-Royce Holdings PLC (LSE:RR.) jumped 3.3% after arch-bear JPMorgan upgraded the engineer to ‘overweight’ from ‘neutral' with a 400p share price target.
The investment bank said it had rated the FTSE 100-listed engineer at either 'underweight' or 'neutral' since April 2018 reflecting concerns that Rolls had far higher long-term service agreement customer advances (LTSA) on its balance sheet than it had previously disclosed.