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The Markets
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The Markets
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Proactive UK has moved.
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Archive

Melrose, Ryanair, Flutter: What brokers said today

The US presidential election could have wide-reaching consequences for the tech sector, with potential impacts on major players like Apple Inc (NASDAQ:AAPL, ETR:APC), NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) and Tesla Inc (NASDAQ:TSLA).

Wall Street and the tech world will be watching election results "with white knuckles," said Wedbush analyst Daniel Ives.

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Rolls-Royce Holdings PLC (LSE:RR.) and BAE Systems PLC (LSE:BA.) are among those most likely to feel the effects if Donald Trump wins the US presidential election.

The duo sit as the most exposed to the US market, XTB analyst Kathleen Brooks noted on Tuesday, leaving them vulnerable to likely isolationist measures under a Trump presidency.

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Bluefield Solar Income Fund (LSE:BSIF) has a clear path for its share price discount to return to its historic premium, according to equity research group Quoted Data.

A new partnership with GLIL Infrastructure provides an avenue for the ongoing development of its impressive pipeline, while the recent sale of a 112MW portfolio of operating solar assets at asset value further highlights the irrational discount.

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Ryanair Holdings PLC (LSE:RYA) has received a price target upgrade to €21 (from €19.50) from the analysts at Canadian bank RBC after the airline’s first-half results yesterday.

Increased earnings estimates (4%) and net cash forecasts reflecting lower price cuts mean the bank now sees upside to flat all-in cost per passenger guidance and sees a 1% reduction in all-in unit costs.

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Flutter Entertainment PLC (LSE:FLTR) is expected to post in-line results for the third quarter of 2024, according to Citi, with projected group revenue growth of 22%, slightly ahead of its 20% growth in the previous quarter.

In the US, Citi forecasts an accelerated revenue growth of 45% year-over-year, attributed to favourable comparisons with weaker prior results.

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Helium One Global Ltd's (AIM:HE1, OTCQB:HLOGF) new helium project, Galactica Pegasus, in Colorado, gives the explorer clear growth potential, that’s according to Panmure Liberum analyst Ashley Kelty.

The company this week confirmed the completion of its farm-in to the Colorado project where multiple wells are planned, with drilling slated to start before the end of this year.

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Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF)'s deal with Chevron and its new separate farm-out process in Uruguay should “herald a period of significant news flow”, according to Zeus Capital.

Analyst Daniel Slater says the broker has a positive outlook for the share, with a ‘total risked NAV’ of 27.8p per share.

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Equities analysts at two prominent investment banks have thrown their weight behind UK water firms ahead of a high-stakes decision from water regulator Ofwat.

The sector is awaiting Ofwat’s ‘final determination’ (FD) due on 19 December, which will lay down the law on how much water firms can charge customers and invest.

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Close Brothers Group PLC (LSE:CBG) potentially faces more claims for compensation if the Supreme Court upholds the Hopcraft judgement applying the Appeal Court's ruling on commission disclosure.

So far, the attention has focused on motor finance, but Canadian bank RBC suggests that the interpretation of the Court of Appeal was so broad it could spread to other areas of lending, notably insurance premium finance where Close Bros is also active.

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The Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) share price, of around 87p, is “an excellent entry point” according to stockbroker Panmure Liberum, which today repeated a ‘buy’ recommendation.

Tim Leckie, Panmure Liberum analyst, in a note, said that a broader pullback in the UK real estate sector had dampened sentiments, but Sirius offered a favourable risk/return dynamic.

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Melrose Industries PLC (LSE:MRO, OTC:MLSPF) shares surged on Tuesday after Citi analysts laid out forecasts for the aerospace manufacturer's free cash flow to surpass expectations ahead.

Citi noted a recent update from Melrose on its risk and revenue-sharing partnerships (RRSP) was “key” to understanding the company’s cash and profitability.

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Online fashion retailer ASOS PLC (LSE:ASC) underdelivered in today’s full-year results, but AJ Bell’s investment director Russ Mould highlighted several positives tucked away in the figures.

A lack of another profit warning drew “some comfort”, said Mould, as did ASOS’ improved debt profile thanks to a debt refinancing and the Topshop disposal.

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