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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Archive

Lloyds Bank, British Airways, Cordiant Digital: What brokers' said today

Against a background of record bulk pensions transfer deals, analysts at Barclays see Legal & General Group PLC (LSE:LGEN) as well positioned to continue growing and potentially increase share buybacks.

The FTSE 100 life insurer in the past fortnight announced record sales in the US of US$160 million and the biggest bulk annuity deal in its history.

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Cordiant Digital Infrastructure Ltd (LSE:CORD) was tipped by Liberum after it had another read of last week's interim results statement, with dividends ahead of schedule and the valuation conservative.

Saying it is "better to under-promise and over-deliver", the broker noted that CORD has "scarcely put a foot wrong" since its launch in 2021, but its shares have been the second worst-performing fund within the Infrastructure peer group over the past year "despite strong industry tailwinds and good NAV per share progression in an unfavourable FX period".

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Wedbush analysts reacted with bemusement at Gamestop Corp’s apparent decision to metamorphose the company into a mutual fund of sorts.

In the video game retailer’s latest interim earnings call, the board announced plans to delegate authority over GameStop’s investment portfolio to chief executive Ryan Cohen.

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Lloyds Banking Group PLC (LSE:LLOY) slipped 1.0% after broker Jefferies cut earnings estimates and slashed its price target for the UK’s largest mortgage lender.

The broker has made material cuts to net interest income forecast on expectations for lower net interest margin (NIM), higher deposit churn and lower base rate benefits with the favourable tailwind from structural hedge income not set to be a full offset until the third quarter of 2024.

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Luxury goods has been a classic game of two halves in 2023, with a 25% jump at the start of the year giving way to some hefty losses from June onwards.

Those thinking the sector is now ripe for recovery again might want to hold that thought, at least until the second half of 2024, according to predictions from three heavyweight brokers this week.

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3i Group PLC (LSE:III) shares have been one of the best on the FTSE 100 this year and analysts at RBC Capital said they still see good value.

The shares are up over 70% this year, over 200% over five years and 900% over the decade, a compound annual growth of 18% over those 10 years, with a total shareholder return of at least 10% for nine of the last 11 years.

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Pantheon International PLC (LSE:PIN) received a 'buy' rating from Stifel as the investment trust's buyback and tender offer has so far trimmed its price discount to net asset value (NAV), but it remains wide at 39%.

"This appears to be discounting a lot of bad news from the portfolio," analysts at the US investment bank said, lifting its fair valuation of the shares to 390p from 365p, a 20% discount to NAV.

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British Airways owner International Consolidated Airlines Group SA (LSE:IAG) and other major European airlines slumped after a more cautious view of the airline sector was put forward by JPMorgan, which cut ratings and slashed price targets.

Against a backdrop of potentially weaker economic growth, the investment bank highlighted the potential for large increases in seat capacity, which could bring revenue per passenger-mile yields down.

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Vertu Motors (AIM:VTU) PLC's shares crashed 23% after the car dealer sounded the earnings alarm.

The company said it faces challenges with expected profitability lower than market forecasts, due to adverse factors in the used vehicle market.

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Future PLC (LSE:FUTR) has been hit by a slowdown in the US, which contributed to a 19% drop in profitability.

Shares in the mainly online publishing group tumbled 20% in early trade as investors digested the full-year results, the updated guidance (of low-single-digit top-line growth), and the news that chief financial officer Penny Ladkin-Brand is leaving the business after eight years.

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Shares in Watches of Switzerland Group PLC (LSE:WOSG) fell 5% in the wake of its interim results, which revealed a 20% fall in statutory profits to £67 million.

While expectations for the rest of the year (which includes the crucial Christmas period) remain intact, there was this cautionary rider: "Our guidance does not reflect any expectation of an improvement in consumer confidence in the remainder of the financial year."

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