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The Markets
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Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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GSK, M&G, Qinetiq: What brokers said today

The new Apple Inc (NASDAQ:AAPL, ETR:APC) AI strategy announced at yesterday's WWDC24 event "will not lead to a significant iPhone upgrade cycle this fall", UBS analysts have predicted.

The new 'Apple Intelligence' strategy, built around a partnership with OpenAI, includes integration of ChatGPT across iOS 18, iPadOS 18 and macOS Sequoia.

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Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF)'s latest American foray, a deal to pick up a 45% working interest in the Rogers enhanced oil recovery (EOR) project in Seminole County, Oklahoma, has been welcomed by broker Shore Capital.

The deal is valued at US$105,000 and it comes without any additional 'promote' or back costs.

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discoverIE Group PLC (LSE:DSCV) has further 'headroom' for earnings-enhancing acquisitions, according to Panmure Gordon, which updated its forecasts in the wake of last week's prelims from the specialist electronics company.

"[The company's] ability to consistently deliver was once again proven in last week’s results, with further margin progression underpinning a small beat to group underlying earnings expectations," the boutique investment bank said in a note to clients.

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M&G’s plan for £450m of debt deleveraging to reduce its Solvency II leverage ratio to 30% by end-2025 is a positive, prudent step from management, analysts at Deutsche Bank suggest.

“Whilst the bears may use this to question the quantum of capital generation over the next 18 months, we believe M&G's cap-gen potential is robust over the next three years (evidenced by a strong target range),” the bank said.

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QinetiQ Group PLC (LSE:QQ.) management’s willingness to return capital to shareholders (plus strong growth in the core business and a supportive defence spending environment) have prompted Citi to upgrade its target price to 530p.

“We believe investor concerns around management pursuing expensive, but non-value accretive acquisitions are increasingly being assuaged by management actions,” said the US bank.

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GSK PLC (LSE:GSK, NYSE:GSK) is 'still appealing' - even in the wake of a significant legal setback, according to regional broker Shore Capital, which set out its 'buy' case in the wake of the UK drug giant's decision to challenge a key US court ruling.

The Delaware state court ruling allowed plaintiffs' expert testimony in Zantac trials, contrary to a previous Federal court decision dismissing all multi-district litigation (MDL) cases.

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J Sainsbury PLC (LSE:SBRY) core grocery business is expected to move up a gear with non-food lines struggling, said Jefferies in a preview note ahead of second-quarter numbers on July 2.

It forecasts first-quarter grocery sales growth of 5.0%, slightly below industry data. Argos and clothing segments are anticipated to perform poorly, with sales declines of 6.0% and 6.0%, respectively, due to tough comparisons and delayed seasonal sales.

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Novacyt SA's (AIM:NCYT, OTC:NVYTF, EPA:ALNOV) share price fell 16% following the announcement of a commercial settlement in its High Court case.

The molecular diagnostics company agreed to pay £5 million to the Department of Health and Social Care, resolving all claims and counterclaims.

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