Research Tree | Equity Research for Investors

21 Apr 22

LIBERUM: Emmerson* - Initiation - Best-in-class independent potash play

Companies: Emmerson Plc

04 May 22

Boohoo Group plc (BOO LN) - FY22 Results

• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind

Companies: boohoo group Plc

29 Apr 22

LIBERUM: Sylvania Platinum* - Production uplift coming

Companies: Sylvania Platinum Ltd.

20 Apr 22

Trading ahead of expectations

Volex has issued its year end trading update confirming revenues in excess of $605m and an operating profit in excess of $55m that are ahead of consensus FY22E expectations of $581m and $54.2m respectively. The Group continues to trade strongly whilst effectively managing global supply chain challenges and benefits from its proven ability to pass through inflationary cost increases, albeit with a time lag. Demand increased during the year, in particular in the EV sector where sales almost double

Companies: Volex plc

09 May 22

IOG - Forecast and valuation update

Forecast and valuation update

Companies: IOG PLC

24 May 22

Arc Minerals (ARCM) - Reflections on the recent Anglo American JV – a very positive move

Arc has recently signed an agreement with Anglo American (LSE:AAL, Market Cap $45bn) on a JV for its highly prospective Zambian licences (subject to final due diligence). The deal sees (3) main staged payments of up to $74m in the ground and $14.5m to Arc (by end of stage 1) and significantly leaving Arc with a 30% stake in the project. On a detailed reflection over the deal we want to reiterate how positive we see this is for Arc: i) Arc could never have raised this sort of capital to bring exp

Companies: ARC Minerals Limited

16 May 22

WH Ireland: Jubilee Metals (JLP) - Operational update

Jubilee today provides an operational update on the ongoing commissioning at the new Inyoni chrome and PGM plants with Jubilee building up to steady state production for nameplate capacity of 1.2Mt chrome concentrate and 44koz PGM production per year. Remember processing chrome creates the upgraded PGM tailings for Jubilee to recover the PGMs (Jubilee being paid a small margin to preconcentrate its own feed) and with the expanded Inyoni there is no need to share the PGM revenues via a JV struct

Companies: Jubilee Metals Group PLC

18 May 22

Continued capital redistribution story to offset weak profitability?

Aviva’s Q1 22 trading update was slightly above our expectations although this remains very much tied to the top-line and profitability could be impacted as of H1. Do the operations really mean that much for the share price with high dividends as a back-up? The latter are expected to continue as the firm has stated that it will release capital above its 180% solvency ratio.

Companies: Aviva plc

23 May 22

LIBERUM: Futura Medical* - A deal the market has been waiting for

Companies: Futura Medical plc

23 May 22

IOG - Production interruption

Production interruption

Companies: IOG PLC

26 May 22

WH Ireland: Jubilee Metals (JLP) - Jubilee confirms new Chairman to take them to the next stage

Jubilee today confirms the appointment of a new Chairman to take over from Colin Bird (who set up the company) and who will we believe have the experience to take them to the next stage. The stage has been set by the outgoing Chairman with Manuel Lino Silva de Sousa Oliveira (Ollie) appointed as independent non-executive director and Chairman to help realise the next moves. He brings with him a wealth of experience with senior executive positions within the Anglo-American Group and at De Beers

Companies: Jubilee Metals Group PLC

17 May 22

Confidence in profitable expansion rebuilding

2021 was a tough year which saw the non-repeat of highly profitable hand sanitiser sales, almost no Chinese sales and the impact of input/cost inflation. However, it successfully integrated 2 acquisitions, which enhance the portfolio and earnings quality, and locked in the planned synergies. With new distribution agreements (inc to China), and mitigations in place to claw back lost margin, VLG looks set to return to profitable growth. The platform is highly scalable and trades on just 5x EV/EBIT

Companies: Venture Life Group Plc

16 May 22

LIBERUM: Plus500* - Strong trading leads to FY22 upgrades

Companies: Plus500 Ltd.

16 May 22

WH Ireland: Pantheon Resources (PANR) - Rig Contracted to Drill Alkaid #2

Pantheon Resources announced that it has contracted a rig (the Nabors 105AC) to the Alkaid #2 well, which the company indicated is scheduled to spud in July 2022. The company indicated that if the well is successful, Pantheon Resources will commence a long-term production test and truck and sell the produced oil to a nearby North Slope facility.

Companies: Pantheon Resources plc

11 May 22

Cenkos: Duke Royalty Ltd -- Majestic Royalty Expansion

Duke has raised £20m in new equity capital, subject to shareholder approval, to fund their continued expansion. The new capital will also support the company's target of increasing their debt facility by a further £25m, and therefore providing a total of £45m of new capital to invest. The increasing scale and diversification of the portfolio is forecast to eventually increase free cash flow per share once full deployment has taken place and will allow Duke to seek a reduction in its debt facilit

Companies: Duke Royalty Limited

27 May 22

Advanced Micro Devices Inc.: The Qualcomm Collaboration & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

AMD delivered another solid financial results and also announced its acquisition of Pensando, a company focused on software-defined cloud computing, and networking with their own DPU. AMD also closed its strategic acquisition of Xilinx which significantly expands AMD’s product portfolio and its technology too. With Pensado, AMD will expand its capabilities of data center solutions. The differentiated technology of Pensando expands the product portfolio of the company and will help AMD in innovat

Companies: ADVANCED MICRO DEVICES (AMD:NYSE)Advanced Micro Devices, Inc. (AMD:NAS)

27 May 22

Pfizer Inc.: The Biohaven Acquisition, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Pfizer had a phenomenal 2021 given the upside of the Covid-19 vaccine and medication. An estimated 1.4 billion patients have been reached by the company with its vaccines and medicines. Pfizer’s position has been upgraded from fourth to second over big bio-pharmacy companies. In R&D, its investments have been increased, and it has started 13 pivotal clinical studies. The company is increasing its investments in Covid-19 medication, Paxlovid and widening its distribution. The strength of the comp

Companies: Pfizer Inc (PFE:NYSE)Pfizer Inc. (PFE:NYS)

27 May 22

Colgate-Palmolive Company: Market Position, Oral Care Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Colgate-Palmolive has maintained its focus on productivity, pricing, premiumization, and innovation which allowed it to deliver a robust quarter in spite of a tough operating environment. The company is continuing to deliver against its targets since it is consistently executing on the strategy Noel. The management resumed production after the pandemic throughout its networks, but at a lower level which impacted the sales of te previous quarter. Resilient and flexible supply chain challenges hel

Companies: Colgate-Palmolive Company (CL:NYSE)Colgate-Palmolive Company (CL:NYS)

27 May 22

Honeywell International Inc.: Acquisition-Led Growth & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Despite a challenging backdrop which includes global unrest, deflation headwinds, and supply chain constraints, Honeywell delivered a decent first quarter. The company’s organic sales have shown a growth of 1% whereas its recurring connected software businesses, advanced materials, productive services and solutions, building products, and its commercial aviation market all showed double-digit organic growth. The strong price realization of the company permitted it to stay forward of the inflatio

Companies: Honeywell International (HON:NYSE)Honeywell International Inc. (HON:NYS)

27 May 22

Chevron Corp: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Like all other oil majors, Chevron continued to benefit from the rise in oil prices and has been returning more cash to shareholders as well as investing to grow in both new energy and traditional businesses. The company is raising the Permian production outlook for this year and advancing two vital transactions of renewable fuels, namely Bunge JV, which is likely to be closed soon, and the acquisition of Renewable Energy Group, which is likely to be closed in the mid-year. Angola LNG returned m

Companies: Chevron Corporation (CVX:NYSE)Chevron Corporation (CVX:NYS)

27 May 22

Exxon Mobil Corp: Guyana Offshore Progress & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Exxon Mobil has made good progress in its development of its assets in LNG, the Permian, and Guyana. The innovative Corpus Christi chemical complex of the company is moving ahead of schedule generating positive cash flow and earnings. Exxon Mobil Corp is advancing bio-fuels, hydrogen, and low-carbon solutions with an intention to be a leader in the energy transition, leveraging its competitive advantages of technology, integration, and scale. Exxon has been building its competitively advanced pr

Companies: Exxon Mobil Corporation (XOM:NYSE)Exxon Mobil Corporation (XOM:NYS)

27 May 22

Cohort - Set to resume growth in FY23

Cohort indicated in its closing FY22 trading update that it expects to deliver earnings in line with market expectations despite a c £10m shortfall in revenues. Part of the sales impact is due to a contract adjustment at Chess, but pandemic-related delays continued to affect other group companies. Order intake has remained strong and management expectations for FY23 are maintained, with order cover for FY23 sales of 69% (64% for FY21). With increasing global defence spending and a return to grow

Companies: Cohort plc

27 May 22

OpGen - Clinical peer-review supports the HPN panel

A recent peer-review in The Lancet Respiratory Medicine recapped the effectiveness of the Unyvero Hospitalized Pneumonia (HPN) panel in identifying gram-negative bacteria, leading to a reduction in use and duration of inappropriate antibiotic therapy in combination with antibiotic stewardship. This large, clinical investigator-initiated, multi-center, randomized, controlled and interventional study was conducted between May 2017 to September 2019 at two tertiary care centers in Switzerland (Univ

Companies: OpGen Inc (OPGN:NYSE)OpGen, Inc. (OPGN:NAS)

27 May 22

Finsbury Growth & Income Trust - Hopeful for better relative UK market performance

Finsbury Growth & Income Trust (FGT) is managed by Nick Train, one of the founding partners of boutique investment firm Lindsell Train. While he is disappointed by the fund’s underperformance over the last 18 months, the manager emphasises that when things improve, it will not be due to a change in strategy or in the top positions, which all have multi-year holding periods. Train believes that there is potential for a relative catch-up by UK stocks given their significant underperformance compar

Companies: Finsbury Growth & Income Trust PLC

27 May 22

H1 21/22: market distortions to drive earnings contraction

EVN saw its operating figures decline versus the previous year as the group struggled to deal with the significant energy market distortions. The networks and supply activities faced extra costs with a relative inability to pass these through to end-customers, or with a lag on a best-case scenario. The full-year net income guidance was confirmed but the overall message sent to the market was negative. With windfall taxes starting to show their teeth in Austria, cautiousness must prevail.

Companies: EVN (EVN:VIE)EVN AG (EVN:WBO)

27 May 22

The pandemic clouds disperse

RUA Life Sciences’ trading update illustrated both a recovery from the challenges of the pandemic faced by medical device companies which translated into increased revenues at RUA Medical Devices and increased investment in its vascular and heart valve products. RUA’s cash balance has decreased from £6,294k at the end of FY 2021 to £2,963k a year later but this was much higher than our previous FY 2022 estimate and we have aligned with the higher YE 2022 cash position in RUA’s trading update.

Companies: RUA Life Sciences Plc

27 May 22

Lilium - Lithium Partner Announced

Lilium continues to build its partner base with a collaboration agreement with lithium supplier Livent. The deal will allow further development of the battery, optimising power and weight for the unique duty cycle of an eVTOL. The announcement follows a run of positive partnership news with flap and motor providers announced earlier this week.

27 May 22

The missed big bang

Management has passed by an opportunity to bring the company back into investors’ minds, but some vague plans and unspecified financial needs do not push the needle. Management had not prepared well to answer investors’ questions. It’s a pity. Reported figures were solid but still impacted by higher energy prices coming in 3.5% and 4.8% above our expectations. Management remained also quite vague when it came to the Q2 outlook and remained hesitant in giving a FY one.

Companies: REC Silicon ASA

27 May 22

Clean Energy Spotlight

27 May 22

Picton Property Income - Strong FY22 builds on long-term record

Picton Property Income’s FY22 earnings were the strongest since launch in 2005. Strong revaluation gains mirrored market trends but further reflected leasing progress and occupancy growth. Recurring EPRA earnings made good progress, together with strong rent collection, supporting a restoration of annualised DPS to pre-pandemic levels. NAV per share of 120p was significantly ahead of our expectations and we will review our existing forecasts, shown below, in the coming days.

Companies: Picton Property Income Limited