SARAH ING SINGER CAPITAL MARKETS
Disappointing and with profit before tax guidance lowered the shares are likely to be weak. The group does remain strongly cash generative and offers around a six per cent yield but it is likely to continue to underperform short term with uncertainty over business volumes.
JAMES HAMILTON NUMIS
A poor first half trading update. Icap is not expensive but far from compellingly cheap valued at 8.6 times historic earnings with earnings declines forecast. It has a 6.4 per cent covered dividend. But again that is not exceptional in the sector. Nothing for the bulls here.
JONATHAN JACKSON KILLIK & CO
Notwithstanding the recent pick-up in volumes, the group notes that visibility over activity remains poor. Management have reiterated their expectation that full-year pre-tax profit will be within the current consensus range, although the midpoint of the prevailing range is 7 per cent lower.