While many renewable stocks fell after Donald Trump's victory in the US presidential election, UBS thinks growth of the sector is still likely to continue, though a repeal of the previous White House administration's inflation reduction act (IRA) is "a real possibility".
Despite the returning president having pledged to halt offshore wind projects if re-elected, the investment bank noted that solar installs were over 50% higher in Trump’s first term compared to the previous four years, and so growth is "likely to continue ... driven by state and corporate emission goals".
As indicated by the rise in US bank shares after Donald Trump was declared victor in the race for the White House, the outlook for the banking sector is looking brighter, including a new swathe of industry consolidation
For a start, a higher terminal interest rate from the Federal Reserve is likely, with 3.75-4.00% possible at the end of 2025, the UBS analysts said, 100 basis points higher than was priced in a month ago.
Rolls-Royce Holdings PLC (LSE:RR.) dipped over 4% on Thursday after the engine maker’s move to double down on guidance underwhelmed given a backdrop of heightened expectations.
Shares fell 4.4% to 548p on the back of the third quarter update, where Rolls said it was on course for operating profit of £2.1-£2.3 billion and free cash flow of £2.1-2.2 billion this year.
Greencoat UK Wind PLC (LSE:UKW), one of the UK’s largest renewable energy investors, remains well-placed to deliver solid returns despite recent market challenges, according to investment research firm Kepler Partners.
With shares currently trading at a discount, UKW is focusing on efficient capital use to maximise value for shareholders.
Legal redress for the motor finance mis-selling could total £19 billion - double the amount original amount forecast by analysts at US group Citi.
The recent decision by the Court of Appeal to rule for the plaintiffs in three cases of undisclosed commission by motor finance lenders adds “significant uncertainty” on future payments said the bank.
Donald Trump's return to the White House will present a "modest net negative" for the mining sector in the near-term, analysts predict, but there are many moving parts to how things could turn out, including potential positives.
This is based on his election campaign promises for more aggressive trade barriers and a slower transition to renewables and electro vehicles, analysts at Jefferies said.
Persimmon PLC's (LSE:PSN) comments about rising costs on Wednesday have not persuaded US bank Jefferies to change any of its estimates but it did trim its price target to ‘derisk its margin forecast for 2025’.
National Insurance hikes will have an impact on the housebuilder’s workforce and lower-margin mix of deliveries, but Jefferies says it is happy to be ahead of forecasts on both completions and margin for the next few years.
AstraZeneca PLC's (LSE:AZN) stock has suffered in recent days, losing 15% of its value as details emerged about ongoing investigations involving the company’s operations in China.
Shore Capital analysts have offered further insight into the factors impacting the Anglo-Swedish giant, noting that Chinese authorities are investigating several issues involving the drugmaker’s current and former employees.
Shares in Sir Martin Sorrell’s S4 Capital PLC (LSE:SFOR) hit an all-time low after the digital marketing group announced that its 2024 earnings and revenue would fall below expectations.
Citing reduced spending by technology clients due to challenging economic conditions and high interest rates, Sorrell committed to cutting costs as it grapples with lowered revenue projections, including significant staff reductions.