|No. of shares out||135m|
|No. of shares floating||133m|
|No. of employees||1,251|
|Trading volume (10 day avg.)||0.3m|
|Profit before tax||£175m|
|Earnings per share||101.50p|
|Cashflow per share||102.17p|
|Cash per share||121.43p|
Tougher times ahead for Bovis, says Shore Capital
Bovis Homes’ (BVS) bullish outlook isn’t reflected in other house builders and Shore Capital still believes the shares present a value trap.
Analyst Robin Hardy retained his ‘sell’ recommendation and a ‘fair value’ price of 967p on the shares, which fell 2.8% to £10.16 yesterday.
He said the ‘bullish tone’ in the in-line trading update was not being expressed elsewhere in the market, although ‘Bovis is still on a journey to rebuild and repair and that this is likely to enable it to fare better than the rest of the sector’.
‘The sector remains very volatile and we would still not advocate investing in the mainstream house builders given much tougher markets ahead than either management teams or the consensus envisage,’ said Hardy.
|No. of shares out||111m|
|No. of shares floating||108m|
|No. of employees||5,485|
|Trading volume (10 day avg.)||0.7m|
|Profit before tax||£183m|
|Earnings per share||120.62p|
|Cashflow per share||127.86p|
|Cash per share||821.77p|
Cautious Numis downgrades Galliford Try
Numis has downgraded Galliford Try (GFRD) as despite the cheap share price there are issues that require caution.
Analyst Christen Hjorth downgraded his recommendation from ‘buy’ to ‘hold’ with a target price of 650p on the stock after the housebuilder announced the outcome of its strategic review into construction, which will involve a 20-25% shrinking of revenues by full year 2021. The shares tumbled 8.5% to 566.5p yesterday.
‘While Galliford is optically cheap, trading on a price/earnings ratio of 4.6 times, the group’s recent track record suggests that a degree of caution is appropriate, at least until construction issues are sustainably dealt with.’
|No. of shares out||82m|
|No. of shares floating||58m|
|No. of employees||3,286|
|Trading volume (10 day avg.)||0.4m|
|Profit before tax||£142m|
|Earnings per share||63.33p|
|Cashflow per share||113.48p|
|Cash per share||92.86p|
Liberum upgrades Superdry
Liberum has upgraded Superdry (SDRY) on the back of the ‘swift decisions’ being made to restore the fashion brand to health.
Analyst Wayne Brown upgraded his recommendation from ‘hold’ to ‘buy’ and increased the target price from 500p to 600p. The shares jumped 10.7% to 512.5p yesterday.
‘It will take time to restore Superdry to being the design-led business we all know it can be, but we are impressed by how swiftly decisions are being made,’ he said.
He added the new chairman’s focus was on ‘building a high calibre team to support the growth of a digital, design-led business with truly huge international opportunity’.
|No. of shares out||1,035m|
|No. of shares floating||1,030m|
|No. of employees||20,786|
|Trading volume (10 day avg.)||3.8m|
|Profit before tax||£2,294m|
|Earnings per share||64.20p|
|Cashflow per share||176.42p|
|Cash per share||22.70p|
Not all bad news at SSE, says Jefferies
Shares in SSE (SSE) have taken a battering from Labour’s plans to nationalise energy and concerns about the 2019/20 outlook, but Jefferies doesn’t think investors should worry too much yet.
Analyst Ahmed Farman retained his ‘buy’ recommendation and target price of £13.70 on the shares, which fell 3.2% to £10.12 yesterday.
‘SSE’s shares have been hammered recently on the back of concerns relating to Labour’s nationalisation plans, and the risk of a disappointing full year 2019/20 outlook,’ he said.
‘However, at first glance, the divisional outlook provided [on Wednesday] seems to be broadly in-line with our expectations. Full-year 2019/20 net debt guidance is a bit higher than our expectations.’
Although Farman added that there was ‘no further clarity on the future of SSE Energy Services’, it remained profitable and ‘we wouldn’t categorise [the lack of clarity] as a major new negative’.
|No. of shares out||1,625m|
|No. of shares floating||1,615m|
|No. of employees||80,787|
|Trading volume (10 day avg.)||5.1m|
|Profit before tax||£1,310m|
|Earnings per share||1.58p|
|Cashflow per share||41.05p|
|Cash per share||13.63p|
Marks and Spencer: patience wears thin
Marks and Spencer’s (MKS) ‘permanent turnaround’ means investor patience is beginning to wear thin, says AJ Bell.
The retailer took a £439 million hit from exceptional costs in its annual result, mainly from store closures, of which it is planning another 110. It also used the results to reveal its rights issue will be priced at 185p per share, a 32% discount to Tuesday’s closing price.
‘Some stocks feel like they are permanently in turnaround mode and Marks and Spencer certainly falls into that category,’ said analyst Russ Mould.
‘Little wonder that investors’ patience is starting to wear thin as these latest full-year results see performance constrained by its restructuring efforts.’
Mould said a tie-up with Ocado – which the rights issue will pay for – is not popular as it meant a dividend cut but ‘this enduring retail brand needed to do something to remain relevant to today’s shoppers’.