Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MEGGITT PLC. We currently have 20 research reports from 4 professional analysts.
|07Dec16 05:10||RNS||Holding(s) in Company|
|02Dec16 11:09||RNS||Director/PDMR Shareholding|
|01Dec16 09:23||RNS||Total Voting Rights|
|30Nov16 09:52||RNS||Holding(s) in Company|
|21Nov16 03:03||RNS||Director/PDMR Shareholding|
|15Nov16 07:00||RNS||Trading Update|
|15Nov16 07:00||RNS||Directorate Change|
Frequency of research reports
Research reports on
Civil: No Reflation here, only a Race to the Bottom
05 Dec 16
The strengthening of the US dollar since the election of Trump is adding to the headwinds in the airline industry: over-capacity and falling yields. The airline industry, which is expected to generate $8bn of free cashflow in 2016 on $600bn of capital employed, needs to spend $120bn annually to maintain current delivery rates. Deferrals and down-gauging is now spreading to narrow-bodies as more and more airlines review their capex plans. We expect acceleration of seat densification as airlines look to sweat their existing fleets. We now expect deliveries to fall by 5% over 2015-18 as opposed to our previous forecast of flat growth. Aftermarket may also suffer as seat densification helps cut number of flights. This leads to reduction in our EPS forecasts for key Civil Aerospace names: Rolls-Royce, Meggitt, GKN and Senior.
Flight path to growth
18 Nov 16
Meggitt has had a turbulent few years with numerous profit warnings and no organic growth since FY13. FY16 looks to be the start of the turnaround, with the recent Q3 trading statement indicating the company is on course to meet guidance for low single-digit organic revenue expansion this year. However, the company has some way to go to restore investor confidence. It was also announced that Rolls-Royce veteran Tony Wood is joining as COO, a boost to the Meggitt management team.
The Sword of Elliott
15 Nov 16
The end of equity is nigh. The IR is in hiding unable to explain the “6% organic growth”, which our calculations show was actually negative, or how the company will achieve 10% organic growth in Q4. The lack of any cash guidance is a clear sign that the ship is sinking with debt. We believe the management are desperately hanging on to their jobs as the sword of Elliott hangs by a single hair from a horse's tail over them. The privilege of dealing with the mess it seems will go to Tony Wood, who we believe was recently relieved of his duties as the boss of Rolls-Royce Aerospace and now has been appointed as COO of Meggitt as of December 1.
War & Peace
11 Nov 16
The UK Aerospace & Defence sector has gained 9% in the last two days following news that Donald Trump is the President-elect. This is understandable given his stated aim to: 1. fully repeal the defence sequester and submit a new budget to rebuild the “depleted” military; and 2. ask NATO allies to increase their defence spending. Current budgets imply a modest CAGR of 1% to FY2020 so it would appear that there is some scope to increase the rate of US defence spending. However, we would caution that the Trump team has not made any explicit commitment to increase total defence spending, only that the money for rebuilding will come from reducing inefficiency and collecting unpaid taxes. He is not the first President to promise to cut red tape and increase efficiency and we suspect not the last. With regards to Civil Aerospace, it is no secret that Republicans see the US Export Import Bank (Exim) as the poster child of corporate welfare and want to close it. This could add uncertainty at a time when traffic growth is under pressure and there is excess capacity. The strength of the dollar against several emerging market currencies is also a headwind for the sector.
27 Oct 16
"Equities in London appear set for another weak opening this morning, as traders reckon with news of disappointing industrial profits growth from China and increasing doubts regarding OPEC's ability to coral members into participating in a joint production cutting agreement. The FTSE-100 is seen opening some 30 points down in early trading. Having grown an impressive 19.5% in August, China's National Bureau of Statistics' report that this figure had moderated to just 7.7% in September came as something of a shock, with slower output and sales across most of the 41 major sectors such as power, electronics and steel that are monitored by the government. This was enough to push all Asian indices, other than the South Korean Kospi into the red with, not surprisingly, the Hang Seng ending the principal casualty. The US markets were more mixed, with the Dow Jones managing a fractional gain on the back of a pleasing performance from Boeing, while continuing nerves across the tech sector following Apple's disappointing quarterly release meant that the NASDAQ was again the hardest hit. By informing investors that Eurozone inflation remains too weak ECB economist, Peter Praet, could be accused telling something everyone already knows, although reading between the lines he appears to be reinforcing expectations that the central bank will be again extending its EUR1.7tr bond purchase programme at its next policy meeting scheduled for 8th December. Meanwhile, UK traders will have a good batch of macro releases to chew over this morning, including 3Q Preliminary GDP figures, the BRC Retail Employment Monitor, the CBI's Monthly Distributive Trades Survey and Service Sector data; the US is also due to release Durable Goods numbers this afternoon. Deep in the reporting season, UK companies due to provide earnings or trading updates this morning include Barclays (BARC.L), BT Group (BT.A.L) and Debenhams (DEB.L), while Germany's troubled Deutsche Bank is also expected to release its latest figures followed this afternoon by US majors including Amazon, Ford and Twitter along with Apple's 'Hello Again' Mac launch event." - Barry Gibb, Research Analyst
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
06 Dec 16
Acal’s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M) continues to grow as a proportion of total revenues and profits and management has raised its targets for this part of the business. The company continues to consider further acquisitions, recently increasing its debt facility to support its growth strategy. The outlook for FY17 is unchanged – based on H117 order inflow, H217 is expected to be stronger and we leave our earnings forecasts substantially unchanged.