Analyst Views | What do you think of icap’s trading update?
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.