Defence will be on the agenda on Tuesday as BAE Systems PLC (LON:BA) will deliver a trading update, with investors keen to hear any more news about an extension to the Eurofighter order from Qatar as the FTSE 100-listed firm awaits more news on UK and US defence budgets.
Analysts at UBS believe that BAE's organic growth will remain around low single digits at group level over 2017-19 although the group’s US defence sales should grow at 7%-8% organically as the Army' modernisation share of the US budget grows faster than other areas.
However the Swiss bank’s analysts think sentiment could weigh on BAE shares until the UK discloses potential budget cuts in January 2018.
Ted Baker still in fashion
First half numbers from fashion firm Ted Baker PLC (LON:TED) on Tuesday are expected to continue its track record of double-digit growth, reflecting the resilience of its balanced model, according to analysts at Liberum Capital.
They noted that the group has evolved to significantly reduce its reliance on pure Retail, while investment into its IT systems infrastructure leaves it well primed in a world where bricks-and-mortar and online are becoming increasingly blurred.
The Liberum analysts think the peak of the firm’s investment cycle has been reached and they now see an inflection point, with EBIT margins to start to rise, and free cashflow should increase materially.
Pub blues for Marston’s
It’s been a tough year for Marston’s plc (LON:MARS) shares, which are down over 20% so far, although the whole pub sector generally has been subdued as UK consumer sentiment remains affected by the Brexit uncertainties, while costs have increased with inflation and national minimum wage changes.
While other pub groups have seen sales decline, Marston’s has so far fared better with its last update showing like-for-like sales growth in the destination and premium pUBS division.
The market will, therefore, be seeking some reassurance in terms of current trading outlook in an update on Tuesday, with future expansion plans and especially any comments on future dividend payments also eyed.
Significant events expected on Tuesday October 10:
Trading updates: BAE Systems PLC (LON:BA), Domino’s Pizza PLC (Q3) (LON:DOM), easyHotel PLC (LON:EZH), Marston’s plc (LON:MARS)
Interims: Ted Baker PLC (LON:TED), LiDCO Group plc (LON:LID), Redstoneconnect PLC (LON:REDS), 1Spatial PLC (LON:SPA), Vedanta Resources PLC (LON:VED)
Finals: Volution Group PLC (LON:FAN)
Economic data: UK industrial, manufacturing production; UK balance of trade