BEST OF THE BROKERS October 28, 2009 CADBURYInvestec said that Cadbury’s interim management statement should be good for valuations of the firm, but that a more contingent approach to the potential end-games leads it to be less bullish overall. The broker decreased its target price for the stock to 840p and downgraded its rating to “hold”. BPCitigroup said that, with BP trading [...]
BEST OF THE BROKERS October 27, 2009 MCBRIDEHaving started the year with conservative margin assumptions for McBride, Investec has upgraded these in light of its strong start to full-year 2010. The broker said that the top line performance is broadly as expected, but that a better mix is driving profits ahead. Investec therefore lifted earnings per share estimates in the region of [...]
CITY MOVES WHO’S SWITCHING JOBS October 26, 2009 KPMGThe accountancy firm’s forensic practice has recruited Nigel Layton, the founder of specialist corporate investigations firm Quest, as a director in the corporate intelligence team. Layton set up Quest in 1995 and has since built up its reputation via cases including an inquiry for the Premier League into allegations of irregular payments surrounding certain football [...]
WILL WE SEE THIRD QUARTER GDP FIGURES REVISED UPWARDS? October 25, 2009 RICHARD MCGUIRE RBC CAPITAL MARKETSWhile preliminary estimates of output are notoriously prone to revision, the clear indication here that the UK remains mired in an unprecedented recession provides a compelling argument in favour of the Bank opting for a precautionary increase in the QE limit come 5 November. PHILIP SHAW INVESTECThe continued contraction of the [...]
HOW DID THE MARKET REACT TO DEBENHAMS’ RESULTS? October 22, 2009 KATHARINE WYNNE INVESTECWe believe the combination of positive margin trends, evidence of improving full price sales despite a highly promotional stance, and Debenhams’ brand mix – which allows customers to trade up and trade down within the range – should support a higher valuation. KEITH BOWMAN HARGREAVES LANSDOWNDebenhams has climbed a very steep hill, with [...]
NatEx warns on profits as bidder circles October 22, 2009 National Express warned yesterday that profits would miss forecasts, leading some in the City to speculate that suitor Stagecoach may lower its offer price. Analysts took a knife to their forecasts after the troubled bus and rail operator admitted annual profits before tax would be “slightly below” its previous expectations. It blamed rising debt interest [...]
Bank united on decision to hold QE, rates October 21, 2009 MINUTES from the Bank of England’s October Monetary Policy Committee (MPC) meeting showed that the nine-member body was unanimous in its decision to keep both the cost of borrowing and quantitative easing (QE) on hold. The MPC also said it believed that the asset purchase programme had had a positive impact on financial markets, through [...]
HOW WILL THESE RESULTS AFFECT KRAFT’S PLANS TO BUY CADBURY? October 21, 2009 MARTIN DEBOO INVESTECCadbury have come out fighting. But, for us, the quality of the third-quarter and first-half growth is not premier cru. However, we think this will be enough to cause Kraft et al to think hard about a fair exit valuation. GRAHAM JONES PANMURE GORDONWe think this statement, plus confidence expressed about 2010 and [...]
BEST OF THE BROKERS October 20, 2009 CABLE & WIRELESSAfter a 45 per cent underperformance, Investec said that negative fundamentals are increasingly factored into the concensus for Cable & Wireless, making a share price re-rating overdue. The broker said that demerger hopes could move the shares higher and upgraded the stock to “hold” with a new target price of 140p. BLUEBAY ASSET [...]
WHAT IS YOUR VIEW OF WILLIAM HILL’S RESULTS? October 19, 2009 MATTHEW GERARD INVESTECAfter much publicised weakness in sports margins and a profit warning from Ladbrokes, this statement is much better than we had anticipated. We believe the weakness in sports margins is a temporary phenomenon and that this is a good opportunity to buy into a cash generative, strongly positioned UK leisure retailer.NICHOLAS BATRAM KBC [...]