Gap Inc (NYSE:GPS) shares rose almost 7% after the clothing retailer was upgraded to ‘overweight’ from ‘neutral’ by JPMorgan.
The investment bank also increased its price target to $30 from $28.
Cordiant Digital Infrastructure Ltd (LSE:CORD)’s latest results were roundly praised by Kepler Trust Intelligence analysts, who highlighted Cordiant’s net asset value growth of 5.4% and a share price return of 38.9%, supported by operational improvements and disciplined portfolio management.
Kepler stated: “In our opinion, these results represent another solid step forward for Cordiant Digital Infrastructure.
UK housebuilders have seen a significant decline in share prices, down about 20% since the October Budget, and analysts at RBC Capital Markets believe the sector has been oversold and presents opportunities, with many stocks now trading below tangible net book value.
Shares in housebuilders were mostly trading lower on Monday amid reignited worries about cladgging taxes.
Tullow Oil PLC's (LSE:TLW) long-running tax arbitration with Ghana has been likened to a scene from Samuel Beckett’s 'Waiting for Godot', as investors and analysts await a resolution that could significantly impact the company’s future.
In a research note, Stifel referenced the existential uncertainty of Beckett’s play to describe the $320 million dispute, which is being decided by an international arbitration court.
Aviva PLC's (LSE:AV.) approach to rival Direct Line looks like a shrewd move, suggest analysts at KBW, which is sticking with its 'buy' recommendation after more reflection on the potential deal.
Now the news is out, the market has considered the probability of a need to raise the offer so KBW believes any downside from the usual arbitrage between buyer and seller is limited.
Burberry Group PLC (LSE:BRBY) shares were up almost 4% after it featured as one of two upgrades in a note on the retail and luxury sectors by a leading investment bank.
Deutsche Bank is now a 'buyer' of the posh Mac maker, anticipating the brand will benefit from improved marketing efforts and a focus on core strengths, setting a target price of 1,180p, a potential 32% rise.
Citi has warned that European bank profitability has likely peaked as rising costs and falling income from loans begin to bite.
Analysts for the US group expect a slight drop in profits for the sector in 2025, as net interest income (a key source of earnings for banks) declines amid stabilising interest rates.
Shares in Johnson Matthey PLC (LSE:JMAT) were up 3% after a leading investment bank upgraded stock in the catalytic converter maker.
JP Morgan moved to 'neutral' from 'underweight' as it took a less bearish stance on the prospects for the business while noting its 1,600p price target for the stock is now 17% below the current valuation.
JPMorgan remains cautious of the luxury sector heading into 2025, citing persistent macroeconomic challenges in China and muted pricing and mix conditions.
Reflecting these concerns, the investment bank lowered its estimates for Burberry Group PLC (LSE:BRBY) and downgraded both Kering and Swatch to ‘underweight’ ratings.
Typhoo has found a worthwhile suitor in Supreme PLC (AIM:SUP), the London-listed distributor that has brought the tea brand out of administration via a £10 million deal, according to analysts.
Although Supreme is better known as a vape distributor, Shore Capital Markets analysts reckon “Supreme comprises admirable entrepreneurship, a strong balance sheet, and a track record for EPS (earnings per share) growth that should be further fuelled by this acquisition”.
Citi analysts have doubled down on backing for BAE Systems PLC (LSE:BA.) and batted off concerns around its exposure to a potential downturn in US defence spending.
Arguing the UK defence firm was “more attractive” than its transatlantic counterparts, Citi in a note reiterated BAE’s ‘buy’ rating.
Burberry Group PLC (LSE:BRBY) gained on Monday after being upgraded to a ‘buy’ rating by Deutsche Bank analysts.
Deutsche forecast 2025 to bring a turnaround in fortunes for the luxury sector as a whole, but also Burberry as it embarked on its own overhaul plan.
Stellantis NV (NYSE:STLA, EPA:STLA) chief executive Carlos Tavares’ surprise departure has ladened even more pressure on the Vauxhall, Peugeot and Jeep maker’s investment thesis, according to JPMorgan.
Tavares’ decision to leave with immediate effect comes less than two months after Natalie Knight resigned as finance chief at the struggling Amsterdam-based business.