Can Vodafone Group PLC (LON:VOD) live up to positive expectations?
If Jefferies' upgrade on Monday - a rise in the price target - is anything to go by then Tuesday’s final results from Vodafone are to be looked forward to.
Vodafone’s “performance gap” is growing in a European telecoms market that is benefitting from macroeconomic trends and pricing, according to Jefferies analyst Jerry Dellis.
“We expect tomorrow's results to deliver evidence of both,” Dellis said in a note. “But the key will be that management back up its upbeat commentary post-3Q in FY17 guidance.”
The analyst forecasts 1.6% growth for fourth quarter service revenues, and highlighted the likelihood of positive trends for the German, Italian and Indian operations, whilst noting that there’s a chance the UK business may weigh on performance along with Vodafone’s Spanish division.
Jefferies sees Vodafone as a ‘buy’ with a 265p price target, which was increased from 250p.
Speedy Hire PLC (LON:SDY) investors await signals of recovery
Peel Hunt, in a note, has highlighted that Speedy Hire shares have seen volatile trading of late, and until there’s more clarity on returns it is hard to argue any premium to the group’s asset value (which, according to the broker stands at 32p).
Analyst Andrew Nussey noted that Speedy Hire’s pre-close statement, at the end of March, guided profit before tax would be ‘in line’ but there was no detail on revenue performance – which he says is key to the timing and pace of recovery.
“We assume a 10% reduction in FY2016E revenues, but fear the UK performance could drag this,” he said.
Is Blinkx PLC (LON:BLNX) still buffering?
The internet video group last month flagged full year revenues of between US$165mln and 170mln, upon which it expects US$10mln to US$11mln of negative earnings (EBITDA).
Paul Richards, analyst at Numis Securities, forecasts Blinkx reaching earnings breakeven by the second half of 2017, though in a note he said: “The group achieved profitability in Q3 and continues to drive strong growth in programmatic and video while accelerating the planned drawdown of its non-core product lines.
“The group has continued to optimise its cost structure and has eliminated over $40m in annualised operating expenses.”
Anticipated announcements
Vodafone PLC (LON:VOD), Premier Foods PLC (LON:PREM), Land Securities Group Plc (LON:LAND), Enterprise Inns (LON:ETI), Polymetal International (LON:POLY), Speedy Hire (LON:SDY) Blinkx (LON:BLNX), BTG Plc (LON:BTG), Greencore (LON:GNC).