B&M European Value Retail SA (LSE:BME) festive trading update was much weaker than expected, Deutsche Bank said, but the past quarter could represent the "trough" before a potential rebound.
Group sales growth of 2.6% for the third quarter was around a 4% miss versus the consensus forecast, the bank noted.
Tesco PLC (LSE:TSCO) chose not to raise its full-year profit and cash flow guidance despite delivering a strong Christmas trading period, a decision Shore Capital views as reflecting the retailer’s focus on long-term investment rather than short-term upgrades.
While group sales rose by 3.1% for the 19 weeks to January 4, CEO Ken Murphy emphasised the importance of maintaining value and quality for customers in a challenging consumer environment.
Greggs PLC (LSE:GRG) shares plunged 13% as investors took flight at the slowdown in like-for-like sales at the bakery and coffee chain and warning that there are headwinds ahead.
Broker Peel Hunt said that while weaker high street footfall over the period was cited, it believes price increases becoming less of a lever to drive sales over the year is compounding the problem.
Utilities have fallen out of favour a little with the rise in bond yields in the US and UK, but earnings across the sector should be supportive in the next round of updates says Citi, which still likes National Grid PLC (LSE:NG.) and SSE PLC (LSE:SSE).
Due to the links to bond yields as a competing asset, Citi notes the European Utilities sector is down 3.5% relative to the market in recent weeks, mostly due to all attention being focused on US bond yields and on political uncertainty, which keeps weighing on the sector.
Shell PLC's (LSE:SHEL, NYSE:SHEL) free cash flow has become too compelling to ignore, according to UBS, which upgraded the energy giant to a 'buy' rating with a revised price target of 3,000p, up from 2,800p.
Despite a 10% decline in Shell's share price since July, UBS believes the company’s strong financial position and restructuring efforts make it an attractive opportunity in the energy sector.
UBS has upgraded SSE PLC (LSE:SSE) to a "buy" rating, raising its 12-month price target to 1,970p from 1,935p.
The investment bank attributes its more optimistic outlook to the group's robust growth in its electricity transmission business and the potential upside from its renewable energy projects, including the pivotal Berwick Bank offshore wind farm.
H&T Group PLC (AIM:HAT) full year trading update was reassuring said house broker ShoreCap with the pledge book growth recovering more strongly than expected.
While this has minimal impact on this year’s results, it presents risk to the upside for 2025, suggests the broker.
Mears Group PLC (AIM:MER) shares rose 7% after trading exceeded market expectations, driven by strong performance in its core housing activities and robust contract momentum.
Operating margins in the housing division continued to strengthen, while volumes in management-led services declined at a slower pace than anticipated.
Scancell Holdings PLC (AIM:SCLP, OTC:SCNLF) early release of data on Modi-1 Moditope vaccine in combination with checkpoint inhibitors in head and neck cancer underlines a growing confidence in the treatment, says Panmure Liberum.
The data showed a significant step up in overall response rate, albeit in small patient numbers to date but supported the continuation of the study to full recruitment.