See what's trending this week...
Companies: PRSM, EHG, FLTR, GVC, NUM, OCDO, CAKE, PTEC, WATR, WMH, ZYT
On a joy-ride | AlphaValue, 18 May
"It seems Ocado is on a partnership spree. The UK-based e-com grocer come technology firm has announced a fourth international partnership within a span of six months. The latest addition to its kitty is Kroger, the second largest food retailer in the US. Under the agreement, Kroger will have access to Ocado’s Smart Platform ‘OSP’ (a proprietary automated warehouse facility) for grocery and other food distribution related activities..."
Outlook improved with top-line growth accelerating | Liberum, 15 May
"Elegant offers a 9% FCF yield, 5% dividend yield, and is trading at a 40% discount to NAV. The group has seen improvement in occupancy in all its hotels and revenue visibility for the rest of the year sits at 95%, with greater confidence in the outlook vs. the same time last year..."
Opening up a significant market | Whitman Howard, 15 May
"The Supreme Court of the USA (SCOTUS) yesterday voted 7-2 in favour of repealing the Professional and Amateur Sports Protection Act of 1992. Seven justices voted in favour of repealing with the court quoting: “Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the Constitution. PASPA is not. PASPA “regulate[s] state governments’ regulation” of their citizens, New York, 505 U. S., at 166. The Constitution gives Congress no such power. The judgment of the Third Circuit is reversed.”.."
£2 FOBT limit and self-help estimates | Whitman Howard, 16 May
"A £2 max stake, is a worst-case scenario for operators with betting shops, we estimate (table 1, p2) it will reduce operators’ revenues and profits significantly, though these estimates exclude any self-help initiatives available to management teams, such as shop closures, automation (SSBTs) and further omnichannel rollout to mitigate the impact of lower B2 limits. Furthermore, we estimate increasing POC tax from 15% to 20% for online (table 3, p4), would offset the taxes lost on FOBTs for the Treasury and help fund losses to the horse racing industry, the latter likely to be affected by the lower B2 limits. The increased POC tax would likely lead to further consolidation in a highly fragmented UK online market.."
Upgrades to revenue forecasts and price target | Whitman Howard, 16 May
"Blue Prism has issued a trading statement today that confirms the very strong sales momentum that we are seeing in Software Automation. The strong momentum was highlighted in our recent sector update, “Software Automation- Automating Intelligently” published on the 20th April. We continue to see this as a multi-year growth story and a multi-billion dollar end market, and we continue to expect further upgrades to market forecasts..."
Multinational growth platform | finnCap, 17 May
"Water Intelligence has reported a strong set of FY 2017 results with adj. EPS up 30% and a continued strong outlook. Indeed, the recent Q1 2018E statement detailed sales were up +40% and PBT up 50%. We have updated our target price to 309p (previously 263p) and reiterate our view that Water Intelligence has a differentiated offering in a large, growing market that is supported by regulation, underpinning very significant growth prospects..."
Strong H1 and franchise remains robust | Edison, 17 May
"Numis has made good progress in the first half of 2018 with particularly strong revenues in corporate broking and advisory and a resilient result from the equities activity. Investment in people and platforms to support future growth and our expectation of lower portfolio gains restrains our earnings estimates for the moment but healthy deal pipelines, continued growth in the corporate client base and the strong balance sheet are positive indicators for the future, subject to market fluctuations..."
FY18 Interims | Arden Partners, 17 May
"Patisserie Holdings announced H1 FY18 interim results to 31 March 2018 earlier this week, showing continued strong growth and a robust balance sheet, despite industry pressures across the casual dining and high street spaces..."
Financial sector holds back progress elsewhere | N+1 Singer, 15 May
"A customer in the Financial sector has experienced a downturn in activity in H1 which has offset strong progress in the Gaming sector. After a poor H1, Financials has seen an improvement in demand and a generally stronger H2 is expected. Exciting opportunities remain in Gaming and elsewhere, and with more normal Financial sales, the outlook remains positive..."