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- AMC stock expected to stay volatile
- Britvic to be London’s next takeover exit, probably
- Tesla tipped to impress with AI and self-driving
- GSK plans to stick with London
AMC stock expected to stay volatile
AMC Entertainment Holdings (NYSE:AMC) share price is expected to stay volatile, with more share sales predicted as the ‘meme-stock’ cinema operator works to reduce its debt pile, so say analysts at Wedbush.
AMC has repaid $1 billion but its outstanding debt still stands at $4.4 billion.
Wedbush analyst Alicia Reese sees the “heavy” debt load as a drag on the stock, especially as the firm has been selling new stock into investors.
As such, she expect shares of AMC to remain volatile, with potential future price boosts from in the market offset by further share issues.
Nevertheless, Reese sees potential for AMC to capture a larger market share.
Meanwhile, she said industry trends show that year-on-year comparatives will be challenging, with some recent box office titles underperforming. But, Reese anticipates a notable rebound in the summer box office against difficult comparisons until September.
"We expect the summer box office to rebound notably from the year’s first half, albeit against difficult comparisons until September," she said.
Britvic to be London’s next takeover exit, ‘probably’
Britvic PLC (LSE:BVIC) is the latest British share to find itself in the crosshairs of foreign bidders, with the soft drinks and mixer firm revealing that Danish beer brewer Carlsberg had made a premium priced offer.
The bid, pitched at 1,250p, was unsuccessful with Britvic rejecting the offer and stating that it ‘significantly undervalued the company's worth and future prospects’.
"While there is no guarantee that any takeover will happen, the news is the latest confirmation that there are many overseas companies running the slide rule over UK PLC," said Richard Hunter at Interactive Investor.
Britvic's board was unanimous in its decision to reject Carlsberg, which now faces a deadline of July 19 to submit a firm offer or withdraw its interest entirely.
In London, the shares closed Friday 7.29% higher at 1,089p – having traded as high as 1,181p earlier in the day.
Tesla tipped to impress with AI and self-driving
Tesla Inc (NASDAQ:TSLA) is a "compelling risk/reward stock," on the assumption that the drama around Elon Musk’s pay deal is behind it, and that it can now progress its AI and automation strategies, that’s according to stockbroker Wedbush.
In a note, ahead of Tesla’s ‘robotaxi day in August’, the broker said Tesla has the potential for a rebound in the second half of the year
Specifically, Wedbush is expecting Tesla to wow investors when it unveils and details plans for AI and ‘full self driving’ (FSD) at the event in just over a month’s time.
“We believe the August 8th robotaxi day will be a key historical moment for the Tesla story that we see as a near-term catalyst,” Wedbusgh analyst Daniel Ives said.
Wedbush emphasized that the key to Tesla reaching a $1 trillion+ valuation lies in the success of its autonomous and FSD vision.
“Ultimately the key to reaching a $1 trillion+ valuation is the autonomous and FSD vision taking hold for Tesla which appears to be turning a corner.” Ives added.
Wedbush has an 'outperform' rating for Tesla, with a base case price target of $275 per share, representing approximately 33% upside from Tesla’s current price of around $181.
GSK plans to stick with London
GSK PLC (LSE:GSK, NYSE:GSK) plans to stay loyal to London, according to comments from chief executive Emma Walmsley.
It comes amidst a run of UK-listed companies large and small are exiting, with through takeovers transfers to other exchanges or simply going
Walmsley, speaking at the Time CEO Summit, commented that GSK is "unequivocally, 100 per cent committed" to its London listing, despite the company conducting only 3% of its business in the UK.
"We have nine sites. We’ve got factories from Montrose to Worthing. We have 11,000 people and we have 300 apprentices every single year," Walmsley emphasized, underlining the company’s substantial operations in the UK.
Walmsley also announced that GSK will be opening its new global headquarters in central London next month.
"We’re just about to open, next month, our new global headquarters in central London because this can be a great magnet and attraction for talent," she added.