[1] Don't expect steady Sainsbury to knock it out the park
Citi does not expect J Sainsbury PLC (LSE:SBRY) to knock it out of the park – quite the reverse, it expects a low-key performance from the grocer.
The bank is sticking to its 'neutral' stance and 300p price target ahead of the retailer's first-quarter trading update, due on 1 July, with forecasts broadly in line with consensus and no change to its full-year earnings estimates or 300p price target … Read more
[2] Why Shell's BP bid doesn't stack up
The numbers do not stack up convincingly for a Shell PLC (LSE:SHEL, NYSE:SHEL) takeover of BP PLC (LSE:BP.), according to JP Morgan.
Even under optimistic assumptions, the bank sees only moderate financial benefits for Shell and warns that a more compelling case would require a much lower price for BP or significantly higher synergies.
The investment bank modelled a 20% premium for BP and post-tax synergies equivalent to 4% of the combined equity value, or about $3.5bn annually … Read more
[3] Persimmon has plenty in the tank
JP Morgan has reiterated its positive stance on Persimmon PLC (LSE:PSN), calling the housebuilder's mid-term targets "a significant source of earnings and valuation upside".
The shares are rated 'overweight' with a price target of 1,520p, implying plenty of headroom from their current level. Persimmon has outpaced the wider sector so far this year, rising 14 per cent compared to a 10 per cent average gain … Read more
[4] Rolls-Royce and aviation industry must 'get to grips' with emissions
The aviation sector's challenges with decarbonisation have been highlighted by broker Panmure Gordon in collaboration with Agency Partners, as while other industries are reducing greenhouse gas emissions, those from airlines are set to continue to grow and could face a government or regulatory crackdown.
Aviation accounts for around 3% of global CO2 emissions but could rise to over 20% by 2050, about a quarter of all human-caused emissions, due to growth in flight numbers.
A group of industry professionals recently warned that efforts to tackle emissions are "failing dramatically" … Read more
[5] ATOME closing in on green fertiliser breakthrough at Villeta project
SP Angel believes ATOME PLC (AIM:ATOM) is on the cusp of a breakthrough, with momentum building rapidly toward a final investment decision on its flagship green fertiliser project in Paraguay.
SPA reiterated its 'buy 'rating and 170p target price … Read more