Decelerating earnings momentum and improvements in the wider market could mean the end of a rally by big technology stocks is coming into view, UBS analysts have warned.
Though Apple Inc, Amazon.com Inc, Alphabet Inc’s Google, Meta Platforms Inc, Microsoft Corp and NVIDIA Corp have enjoyed strong earnings momentum in recent months, such growth will likely slow this year, the bank said in a note.
Although the Bank of Japan this week has took a historic step by implementing its first interest rate hike in 17 years, strategists at UBS expect Japanese stocks to continue to push past their recent all-time highs.
The BoJ moved to end an eight-year stretch of negative interest rates, also abandoning other aspects of a long period of ultra-easy monetary policy, including yield-curve control aimed at keeping the 10-year government bond yield near zero.
Lenders HSBC and NatWest, along with small cap Central Asia Metals, were among large high-yielding London companies flagged by Shore Capital in a note to income investing clients.
The broker offered the results of two stock screens "to help investors identify stocks with high dividend yields, a track record of DPS growth, and a financial position strong enough to support current pay-out ratios".
Shares in Alpha Group International PLC (AIM:ALPH) rose after the fintech published results and appointed financial sector veteran Dame Jayne-Anne Gadhia as chair designate as the company prepares to move from AIM to London's main market.
The figures showed revenues grew 12% last year to £110.4 million, as expected, with £186,000 from one month of Cobase, the group's first acquisition.
Stifel has resumed coverage of Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) with a bullish outlook, highlighting the firm's strategic growth initiatives, value enhancement through acquisitions, and efficient capital reallocation.
Diversified's recent acquisition of Oaktree Capital's interest in certain Central Region assets, valued at approximately $410 million, represents the group's largest venture in the Central Region of the US to date and is expected to significantly bolster its financial positioning.
London-listed renewables investor Foresight Solar Fund Ltd's (LSE:FSFL) strong cash position was highlighted in a Wednesday broker note from RBC Capital Markets.
"The balance sheet remains the key positive,” said RBC. “Record cash generation in 2023 and progress on (revolving credit facility) repayment leaves the balance sheet well-placed in a £6.2 million current group net cash position at year-end."
While Computacenter PLC (LSE:CCC) shares fell sharply on the back of its full-year results cash, analysts had mostly good things to say about the IT reseller's results and the outlook for the rest of 2024.
The results are slightly better than expected with strong free cash flow, said Peter McNally at Stifel, "however, the company is still considering options of what to do with its excess cash".
Low-cost carriers EasyJet PLC, Ryanair Holdings PLC (LSE:RYA) and Wizz Air Holdings PLC (AIM:WIZZ) are showing encouraging fare trends, with an average 17% year-on-year increase achieved in February, according to newly published data from JPMorgan.
Ryanair, while showing a solid +11% increase in February fares, slightly missed the more optimistic forecasts set by JPMorgan.
Unilever PLC (LSE:ULVR)'s decision to divest itself of its ice cream business - which makes freezer staples such as Ben & Jerry's and Wall's - is being viewed favourably by analysts as they digest the news.
The food and household goods conglomerate, which is looking to complete the demerger by the end of next year, unveiled the plans as part of a streamlining process that will see it do 'fewer things better'.
Shares in Halma Group PLC were up 3.3% in late morning trading after a leading investment bank upgraded its stock recommendation on the safety equipment group.
In a short note, UBS said it had moved to 'buy' from 'neutral' and set a price target of 2,700p, up 500p from its previous valuation.
JP Morgan has raised its price target for Pearson PLC (LSE:PSON) to 1,220p, up by 200p, while reiterating its 'overweight' recommendation.
The American investment bank is set to delve into Pearson's virtual schools and the anticipated growth of its US Higher Education (USHE) sector in a fireside chat with divisional CEO Tom ap Simon on March 27.
PayPoint PLC shares were up 2% after it announced a 'significant expansion' of its collaboration with Lloyds Banking Group PLC (LSE:LLOY);s Cardnet, which will now serve as its primary card processing partner across its network.
This enhanced multi-year pact will enable the black horse bank to provide a suite of banking and card services to its merchants.