Renew Holdings Could Capitalize on GBP640 Bln UK Infrastructure
Spend
Renew Holdings is a good opportunity for investors looking to
benefit from the U.K. government's commitment to invest GBP640
billion in infrastructure, Shore Capital says. What's more, the
U.K. engineering-services company's variable cost-plus contracts
leave it well positioned to pass inflationary pressures on to
customers and its public-sector-driven revenue protects it from
economic downturns, Shore adds. "We continue to believe Renew has a
lower risk profile than the market perceives, possibly due to
associations with peers servicing much larger fixed contracts," the
U.K. investment group says. Shore Capital has a buy rating on the
stock. Shares trade up 3.8% at 736 pence.
Companies News:
Sage Group Says 1Q Was in Line; Backs FY 2022 Guidance
Sage Group PLC said Wednesday that growth was in line with
expectations in the first quarter of its fiscal 2022 and it backed
its guidance for the full year.
---
U.K. Watchdog Issues Enforcement Order on National Express,
Stagecoach Deal
The U.K. Competition and Markets Authority on Wednesday issued
an initial enforcement order on National Express Group PLC's
planned takeover of Stagecoach Group PLC, preventing the companies
from fully combining while it considers the deal.
---
Fresnillo Operations in Mexico Hit by Omicron Variant, New Labor
Rules
Fresnillo PLC on Wednesday said that the pandemic and the new
labor reform in Mexico is hampering its mining operations, and
forecast lower gold production for this year.
---
Brewin Dolphin 1Q Total Funds Under Management Rose
Brewin Dolphin Holdings PLC said Wednesday that its total funds
under management rose in the first quarter of fiscal 2022,
benefiting from growth across both its direct and indirect
business.
---
Playtech Notes Media Speculation on Future; Reiterates Support
for Aristocrat Bid
Playtech PLC said Wednesday that it has noted recent media
speculation on its future strategy and that it reiterates its
recommendation that shareholders vote in favor of the offer from
Aristocrat Leisure Ltd.
---
Wizz Air 3Q Pretax Loss Widened; Warns on 4Q Results
Wizz Air Holdings PLC on Wednesday reported a widened pretax
loss for the third quarter of fiscal 2022 after booking
significantly higher prices and seeing the average revenue per
passenger decrease, and warned of a hit from the impact of the
Omicron Covid-19 variant in the last quarter of the year.
---
Tullow Oil Sees 2021 Free Cash Flow Ahead of Guidance
Tullow Oil PLC said Wednesday that it expects to report
better-than-expected free cash flow for 2021, reflecting supportive
oil prices, focus on costs and favorable working capital
movements.
---
Bloomsbury Publishing Says FY 2022 Revenue, Profit to Beat
Expectations
Bloomsbury Publishing PLC said Wednesday that it expects to
report revenue and profit ahead of market expectations for fiscal
2022.
---
Digital 9 Infrastructure Raises GBP95.2 Mln via Share
Placing
Digital 9 Infrastructure PLC said Wednesday that it has raised
95.2 million pounds ($128.6 million) via the share placing
announced earlier this month.
---
Pets at Home Expects FY2022 Underlying Pretax Pft to Beat Market
Views After Strong 3Q
Pets at Home Group PLC said Wednesday that revenue increased in
the third quarter of fiscal 2022, and that it expects to post a
full-year underlying pretax profit above market expectations.
---
Quilter 4Q Assets Under Management Rose 13%
Quilter PLC said Wednesday that assets under management rose 13%
in the fourth quarter of 2021.
Market Talk:
Abrdn's Interactive Investor Deal Might Spark Growth Fears
1142 GMT - Abrdn's planned acquisition of investment firm
Interactive Investor makes sense, but it might prompt questions
about the fund manager's growth outlook, Berenberg says. The deal
is logical as the U.K. investment-platform market is fast-growing
with strong structural trends, though it might compound concerns
about Abrdn's investment-management business, Berenberg says. "If
Abrdn used the GBP1.5 billion paid for II to buy back shares, it
would be 40% EPS-accretive. Without meaningful buybacks, investors
may question whether the core business can achieve long-term
growth," Berenberg analysts say, downgrading Abrdn to hold from
buy. Meanwhile, Berenberg says Amundi is its preferred asset
manager with a buy rating, but keeps its sell rating on Ashmore
Group due to concerns about flows. (philip.waller@wsj.com)
---
Tullow's 2022 Guidance Seen as Cautious
1059 GMT - Tullow Oil has released a trading update which
includes a positive end to 2021 and cautious forecasts for 2022,
RBC analyst Al Stanton says. Production for 2021 was in line with
expectations, but free cash flow was ahead of guidance and year-end
net debt was lower than expected, he says. As for 2022, production
guidance is in line with expectations, although clouded slightly by
the Occidental Petroleum deal in Ghana, Stanton says. Moreover, the
capital and abandonment expenditure budget is ahead of forecasts,
and the company's hedging strategy limit exposure to oil price
surges, Stanton says. Shares slip 0.8% to 56.38 pence.
---
Sage Seen as a Long-Term Holding With Revenue Growth
Potential
1057 GMT - Sage Group's organic revenue growth should accelerate
to around 6% for FY 2022, Shore Capital says, as a shrinking base
of declining revenues has less of a drag and cloud migration
continues as the product portfolio improves. The U.K. investment
group does warn though that it doubts whether the software company
can deliver a positive surprise for the period without remarkably
strong new customer acquisition. Shore Capital says Sage is a sound
long-term holding as it continues its transition to software
subscription and Shore has a hold rating on the stock. Shares trade
down 3.9% at 733 pence.
---
Wizz Air Yet to Find Post-Pandemic Rhythm, Davy Says
1042 GMT - Wizz Air Holdings has yet to find its
post-coronavirus rhythm, Davy says after the European budget
airline reported a widened third-quarter pretax loss and warned of
a hit from the Omicron Covid-19 variant in the last quarter of the
year. The results were weak, with a net loss of EUR268 million
compared to consensus of EUR235 million and Davy's estimate of
EUR237 million, the brokerage says. "Another set of underwhelming
financials shows its high-capacity growth needs to be matched with
strong in-market demand and its cost base needs full aircraft
utilization to generate positive economics," Davy analysts say.
"The long-term growth story is intact, but we see a more
unpredictable and prolonged financial recovery than most." Shares
rise 3.7%.
---
Wizz Air's Future Seen as Bright if Expansion Plans Are
Successful
1041 GMT - Despite Wizz Air posting a 3Q loss, this can be
largely attributed to its ambitious expansion plans which include
trebling aircraft to 500 by the end of the decade, Adam Vettese at
eToro says. Although rapidly rising fuel prices and weaker demand
due to Omicron mean the budget airline expects further losses in
the coming months, it expects to recover by the summer, and looking
beyond that its future looks particularly bright if the expansion
is successful, Vettese says. "It's been a difficult pandemic for
airlines, but there seems to be light at the end of the tunnel for
the sector, particularly those that operate at the budget end of
the market," Vettese says. Shares are up 3.6% at 4,410 pence.
---
Fresnillo Should Bounce Back After a Likely Very Weak 2022
Fresnillo's guidance for 2022 is 23% lower than consensus,
reflecting reduced labor availability after a new contractor law in
Mexico and delays at the Juanicipio project, RBC Capital Markets
says. Shares in the precious-metals mining company fall 12% after
the announcement. Fresnillo has a long life set of assets, however,
which should see material improvement following what seems will be
an extremely poor 2022, the Canadian bank says. "This leaves the
shares in an interesting position considering there has already
been a derating, the balance sheet remains strong, and considering
the wider volatility in capital markets, potential for its
gold/silver optionality see improving pricing as the year
progresses," RBC says
---
Fresnillo May Face Consensus Downgrades After 4Q
0946 GMT - Fresnillo's fourth-quarter results fell short of
hopes, raising the prospect of consensus downgrades for the Mexican
silver miner, Citigroup says. Operational results were below
expectations as the mining company reported multiple headwinds at
its Mexican operations, including higher-than-expected labor
shortages due to reforms announced by the government coming into
effect from Sept. 1, Citi says. "Production guidance for 2022 for
both silver and gold is weaker than our expectations, which could
drive consensus downgrades, in our view," Citi analyst Krishan
Agarwal says.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
January 26, 2022 07:05 ET (12:05 GMT)
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