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

Trainline, British Airways owner, Direct Line and more: What brokers said today

ITV PLC (LSE:ITV)’s first quarter update faced mixed reviews from Deutsche Bank analysts, which highlighted a weaker studio performance as dragging on the results.

The network reported a 16% fall in studio revenue over the quarter on Thursday, prompting the total figure to fall 6%.

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Genel Energy PLC (LSE:GENL, OTC:GEGYY) has had its buy rating maintained by Jefferies after what the US bank says was a “robust” first-quarter update.

"Local demand is staying strong", with the outlook for 2024 unchanged, and Genel expects to "maintain net cash above $100 million throughout 2024", Jefferies added

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Brokers Liberum and Peel Hunt maintained their positive outlook on British Airways owner International Consolidated Airlines Group SA (LSE:IAG) after it exceeded expectations in the first quarter.

Liberum reiterated its buy rating with a target price of 450p, noting that IAG’s operating profit reached €68 million, significantly higher than the €9 million recorded in the previous year and above the consensus estimate of €48 million.

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Direct Line’s recent trading update highlights the group is benefiting from substantial motor insurance price increases.

To remediate margins, however, Panmure Gordon says it is having to increase prices above the market average, meaning volumes continued to shrink over the first quarter.

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Land Securities Group PLC (LSE:LAND)’s final results next Friday, 17 May come hot on the heels of the sale of its hotel portfolio, but more on the disposal programme will be needed.

That’s according to UBS analysts, who noted no surprises were expected in the report as overrented leases approach expiry and “economically unviable” projects remain.

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Trainline PLC (LSE:TRN) has received an upgrade to buy from analysts at UBS, who say that too much of the threat of rail nationalisation by Labour is priced into the shares.

In April the Swiss bank had a neutral rating, but following Labour’s pledge the share price has tumbled back to 335p.

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Goldman Sachs has updated its outlook for Brent crude oil, anticipating that prices will average $82 per barrel in 2025, with a price range of $75 to $90 in most scenarios.

This stability is attributed to OPEC+, which is expected to maintain its current production cuts due to unexpectedly high oil inventories and the potential impact on short-term oil profits.

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In a recent sweep of the UK housebuilding sector, Deutsche Bank has initiated coverage with a favourable outlook, singling out Bellway PLC (LSE:BWY) as the company with the most promising upside potential.

Deutsche highlighted its robust strategy and resilient performance despite recent market challenges, setting a target price of 3,013p compared with the current price of 2,736p (up 2.6%).

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Greggs PLC (LSE:GRG) has opened its 2,500th UK store, putting it on course to catch market leader Costa, which has about 2,670 outlets.

The bakery chain has already pencilled in a target for 3,000 stores and the rate of expansion is unlikely to slow, with 160 new openings scheduled for 2024.

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Shares in S4 Capital PLC (LSE:SFOR), Martin Sorrell's digital advertising group, jumped 18% following a trading update that wasn't quite as bad as first feared.

Liberum encapsulated the relief when it said the declines have stabilised for the business, which has been hard hit by a decline in spending by the tech sector.

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CRH PLC (LSE:CRH, NYSE:CRH) rose by more than 4% on Friday after unveiling a new dividend on the back of improved first-quarter results.

Revenue increased 2% to US$6.5 billion, the building materials firm reported, while adjusted pre-tax earnings climbed 15% to US$445 million.

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BAE Systems PLC (LSE:BA.) shares look fully valued despite growing global defence spending, Shore Capital analysts believe.

A ‘hold’ rating was reiterated for the FTSE 100-listed defence firm as a result, despite BAE’s own view that strong momentum would continue as arms spending increases.

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The UK's major banks, notably Natwest Group PLC and Barclays PLC (LSE:BARC), are expected to remain robust in the wake of the Bank of England's (BoE) decision to maintain current interest rates, according to JP Morgan.

Although the central bank's governor hinted at potential future rate reductions if inflation pressures subside, this is unlikely to negatively impact the banks significantly, the American investment bank said.

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Hostelworld Group PLC (LSE:HSW, OTC:HSWLF) can make big market share gains in the online travel sector, analysts at Deutsche Bank predict.

Deutsche Bank has initiated coverage of the London-listed company with a ‘buy’ rating, hailing Hostelworld’s offerings for solo travellers.

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Proactive UK has moved.
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