A plethora of interims awaits investors tomorrow, including from South Africa based investment bank Investec and baby retail specialist Mothercare (LON:MTC)
City broker Numis is optimistic on the well known UK chain.
It rates Mothercare a 'buy' and targets 300p for the shares - a substantial distance away from the current price of 225p.
The broker notes its second quarter trading update showed further evidence that the UK business was on what it called a "recovery trajectory".
Its international business is also back on track in underlying terms, but facing stiffer currency headwinds, notes analyst Matthew Taylor.
In the second quarter, the international business delivered an increase of sales of over 5.6%, while currency headwinds strengthened further.
Numis left its full year estimates unchanged at the second quarter stage and expect the interim results to show good progress in reducing the UK losses and a slight decline in International profit, reflecting a difficult Q1 and adverse currency.
The broker reckons the current share price fails to reflect the progress in the UK recovery plan and inherent value of the international business.
Also reporting is postal ngiant Royal Mail (LON:RMG) with investors keen for the company to allay competition fears. The letter and parcel deliverer has faced a competition review by Ofcom since June, following the withdrawal from the end-to-end market of sole rival Whistl, formerly known as TNT Post. The update comes just ahead of the group’s most important period, the run-up to Christmas and investors will want to hear forecasts for the period as well. Royal Mail’s shares have outperformed the market so far this year, rising 3% against a 7% fall for the FTSE100 but they have lagged significantly since mid-year. Heavyweight broker JP Morgan said it continues to recommend Royal Mail shares for long-term investor, however, and investors will be hoping for a return to the first half performance following these interims.
Significant announcements expected:
Final: Euromoney Institutional Investor (LON:ERM), Grainger (LON:GRI)
Interim: Royal Mail (LON:RMG), New World Resources (LON:NWR), QinetiQ Group (LON:QQ.), Premier Foods (LON:PFD), Poundland Group (LON:PLND), Johnson Matthey (LON:JMAT), Dart Group (LON:DTG), Caledonia Investments (LON:CLDN), Close Brothers Group (LON:CBG), Mothercare (LON:MTC), Frutarom Industries (LON:FRUT), MHP S.A GDR (LON:MHPC), Investec (LON:INVP)
Trading statement: Ted Baker (LON:TED), Centrica (LON:CNA), Interserve (LON:IRV), CRH (LON:CRH), Catlin Group Ltd (LON:CGL), Plaza Centers NV (LON:PLAZ)
Economic: UK – retail sales; US – jobless claims.