Glaxo Seen With Further Upside From Consumer Healthcare Spinoff

GlaxoSmithKline investors are going to show rising appetite to accumulate the stock ahead of the company's planned spinoff of its consumer healthcare division, and the company is seen with further upside from the operation, which is meant to take place in mid-2022, Jefferies says. Looking at the British pharma major's pipeline, clinical news coming out of it could kick-start investors' belief in it, and that should also provide for some upside, according to Jefferies.

 
Companies News: 

PageGroup Raises 2021 Operating Profit Guidance to Around GBP165 Mln

PageGroup PLC said Tuesday that it has raised its guidance for 2021 operating profit after positive momentum continued in the period from Oct. 1 to Nov. 30.

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Pebble Group on Track to Meet 2021 Market Views

Pebble Group PLC said Tuesday that it is on track to at least meet market expectations for the full year.

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Liontrust to Buy Majedie Asset Management for GBP120 Mln

Liontrust Asset Management PLC said Tuesday that it is buying Majedie Asset Management Ltd. for 120 million pounds ($159.2 million) in shares and cash, a deal that will boost Liontrust's existing institutional proposition.

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W.H. Ireland Group 1H Pretax Profit Fell as Revenue Rose

W.H. Ireland Group PLC said Tuesday that first-half pretax profit decreased as revenue rose.

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Supreme 1H Pretax Profit Rose on Higher Revenue, Declares Dividend

Supreme PLC said Tuesday that its pretax profit for the first half of fiscal 2022 has increased, backed by higher revenue, and it declared a dividend payout.

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Carr's FY 2021 Profit, Revenue Rose Ahead of Management Views

Carr's Group PLC said Tuesday that its fiscal 2021 pretax profit and revenue rose ahead of management's improved expectations, and raised its dividend.

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Tritax EuroBox FY 2021 Profit Rose

Tritax EuroBox PLC said Tuesday that its fiscal 2021 profit rose on increased rental income and improved property valuations.

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Premier Miton Group FY 2021 Pretax Profit Rose, Increases Dividend

Premier Miton Group PLC on Tuesday posted a rise in pretax profit for fiscal 2021 and increased its dividend payout.

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CareTech FY 2021 Pretax Profit, Revenue Rose; Increases Final Dividend

CareTech Holdings PLC said Tuesday that fiscal 2021 pretax profit and revenue rose, and that it has increased the final dividend after robust performance in its core activities.

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Paragon Banking FY 2021 Pretax Profit Rose on Credit Loss Provision Release

Paragon Banking Group PLC on Tuesday reported an 80% rise in pretax profit for fiscal 2021 as it released Covid-based provisions booked previously against credit losses.

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Somero Enterprises Raises Guidance on Strong 2H Performance

Somero Enterprises Inc. said Tuesday that it has raised its guidance for 2021 after experiencing strong business momentum in the second half of the year.

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Shanta Gold Shares Drop After Cutting 2021 Production Guidance

Shares in Shanta Gold Ltd. fell Tuesday after it downgraded full-year gold production guidance for its New Luika mine in Tanzania.

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Mercia Asset Management 1H Pretax Profit Rose on Higher Revenue

Mercia Asset Management PLC on Tuesday reported a 38% rise in pretax profit for the first half of fiscal 2022 and said it expects the strong momentum to continue.

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Tandem Group Sees 2021 Profit in Line With or Ahead of Market Views

Tandem Group PLC said Tuesday that it expects to report a profit for 2021 in line with or slightly ahead of market expectations as it benefits from a robust performance.

 
Market Talk: 

AstraZeneca to Face a Scarcity of Pipeline Catalysts in 2022

1123 GMT - AstraZeneca's pipeline will face a relative scarcity of catalysts in 2022, while its oncology portfolio sees rising competition, Jefferies says, downgrading the stock to hold from buy. The news flow coming out of the pharma giant's pipeline for next year isn't particularly meaningful, besides the publication of data from a Phase 3 study in breast cancer set to come out in the first quarter, Jefferies says. That said, AstraZeneca's growth in the near term might be compelling as the strategic merits of its Alexion acquisition are better appreciated and some new launches look exciting, the investment bank says.

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BAT Shareholders Could Get Boost From Cash Pile

1106 GMT - Shares in British American Tobacco rise 2.3% after the cigarette maker said it continues to expect 2021 revenue to rise more than 5% on a constant-currency basis. A stronger-looking balance sheet means BAT can start returning excess cash to shareholders, Hargreaves Lansdown says. "The low multiples on which tobacco shares trade mean buy-backs will be highly earnings-accretive," HL fund manager Steve Clayton says. "That raises the prospect of faster dividend growth in years ahead. With the market newly reassured that trading is normalizing after the interruptions posed by the pandemic, we think BAT's income attractions are becoming harder to ignore," Clayton says.

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Higher Rates Environment to Boost Issuance of Convertible Bonds in 2022

1106 GMT - Societe Generale expects the issuance volume of convertible bonds to rise to EUR23 billion in 2022, from EUR19 billion in 2021, in the EMEA region, Ralf Darpe, head of equity capital markets for Germany, Austria, Switzerland, says in a webinar. The expected rise should be driven by higher rates and and possibly higher volatility, he says. The year 2020 delivered a record issuance volume of EUR27.2 billion in convertible bond issuance, while the volume in 2021 has been driven by strong activity in the U.K. and France. Darpe adds that environmental, social and governance (ESG) aspects have reached convertible bonds, too, although less in Germany and more in France.

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Liontrust's Majedie Purchase Is a Surprise

1049 GMT - U.K. sustainability-focused investment manager Liontrust Asset Management's purchase of Majedie Asset Management Ltd. for GBP120 million is a surprise, Ryan Hughes at AJ Bell says. Although given the company's owner-managed structure and strong independence it wasn't a name mentioned regularly as a takeover target, its ability to tap into Liontrust's wider resources and hopefully grow the assets was clearly a strong pull, Hughes says. "The fund ranges of the two companies look a decent fit, however there is the chance of some consolidation of the enlarged fund range, not least because Liontrust will have 19 funds that each have less than GBP100 million in assets as they still look to tidy up the assets from their previous purchases," Hughes says.

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Ashtead Gets Rental-Revenue Boost From Volume Increase

1014 GMT - Ashtead Group shares rise 3% after the plant-hire group reported higher second-quarter profit and forecast full-year performance ahead of its previous expectations. The latest results show increased volumes of equipment out on loan have driven rental revenue higher, AJ Bell says. "Joe Biden's $1.2 trillion infrastructure bill should provide a positive backdrop for Ashtead in the U.S., which is its main operating region. Yet Covid still presents a challenge in 2022," Bell's investment director Russ Mould says. "Any prolonged setbacks to economic activity could have a negative knock-on effect to construction activity, causing project delays. This risk will keep Ashtead on its toes."

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Uber Eats, Deliveroo Seen as Most Exposed to EU Gig-Economy Proposal

0956 GMT - Uber Eats and Deliveroo will likely be the most exposed food delivery platforms to a European Union proposal that could pave the way for gig-economy workers to be treated as employees rather than contractors, Bryan Garnier says. "Deliveroo and Uber Eats will be the most exposed, bearing in mind that both are quite active in Europe, beyond the U.K...[and] rely on freelancers," Bryan Garnier says. On the other hand, the European investment bank sees Just Eat and Germany's Delivery Hero as minimally exposed, citing their existing employment model as well as the relatively low percentage of revenue they generate in the region.

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November Was Good for UK Retailers, But Omicron Seen Complicating December

0926 GMT - November appears to have been another good month for retailers in the U.K., Pantheon Macroeconomics' chief eurozone economist Claus Vistesen says. Year-on-year growth in total sales values increased to 5.0% in November from 1.3% in October. However, Vistesen says the pick-up in growth in total sales primarily reflects the impact of the lockdown a year ago. The fourth quarter is likely to end on a bad note for retailers, Vistesen says. Shoppers probably have purchased Christmas gifts earlier than usual this year due to concerns about product availability, he says. In addition, Omicron already has had an impact on consumers' willingness to visit shops, and to a larger extent hospitality venues/

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

December 07, 2021 07:47 ET (12:47 GMT)

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