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Sparebanken Møre (MORG) presented a Q3 EPS of NOK 7.4, where higher trading income, along with lower opex and impairments, resulted in a solid EPS beat. The increased provision within the offshore segment is supportive, but MORG still lags DNB and SRBANK. We have increased 2020e EPS 10%, and 2021e/2022e EPS 4%/3%. We keep our Buy rating and target price of NOK 330 for now. At NOK 290 MORG is trading around 10.3x ‘21e EPS and 0.88x ‘20e BV.
Companies: Sparebanken More
Sparebanken Møre (MORG) presented a strong Q2 EPS of NOK 7.2, but the surprisingly weak NII overshadowed the report. We had also expected increased provisions within offshore and this uncertainty remains a weakness in our view. We have increased 2020e EPS 19%, but lowered 2021e/2022e EPS 4%. We lower our target price to NOK 280 (290) but retain our Hold recommendation. The new TP is equivalent to 11x 2021e EPS and 0.85x 2020e BV.
Sparebanken Møre (MORG) presented a solid Q1 report on Thursday and despite a soft NII and higher opex, lower impairments resulted in an earnings beat. The loan losses of NOK 36m, equivalent to 19bps is contrary to what we have seen in the other Norwegian banks and we expect higher provisions in Q2 following reversals within corporate in Q1. We have made fairly neutral estimate revisions to 2021 and hence reiterate Buy and target price of NOK 300 for now.
Sparebanken Møre (MORG) presented a solid Q4 report today despite a soft NII characterised by NOK 15m in higher crisis resolution/deposit guarantee fund fees. The DPS of NOK 17.5 was above our expectations and is currently yielding an attractive 5.2%. The opex trend is a bit worrying and something we will focus on going forward, but we continue to find the investment case attractive and reiterate Buy and target price of NOK 350.
Q4/19 EPS came in at NOK 9.00, 3%/2% above ARCe/cons
Soft NII following increased crisis resolution/deposit guarantee fund fee
CET1 came in 90/80bps above following higher transitional effects
Expect fairly neutral estimate revisions
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The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.
Companies: Lloyds Banking Group plc
Legal & General disclosed strong HY 22 results, albeit in line with the consensus’ expectations. With most of the metrics improving on a yoy and sequential basis, we believe that the strong solvency position, in an environment with (sustainable?) higher yields, should trigger capital distributions to shareholders at the year-end.
Companies: Legal & General Group Plc
Revolution Beauty has announced a downgrade to the outlook for FY23 driven by retailer challenges and the unprecedented macroeconomic backdrop. It has confirmed it will now report FY22 results on 30 August 2022.
Companies: Revolution Beauty Group plc
Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy
Companies: EQT IES DRX NESF PHE SAE
Cenkos:Duke Royalty Ltd -Record revenues keep on rolling
Companies: Duke Royalty Limited
Companies: H&T Group plc
Companies: Renewables Infrastructure Group (TRIG:LON)Oakley Capital Investments Limited (OCI:LON)
Dish of the day
No joiners today.
No leavers today.
What’s cooking in the IPO kitchen?
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
Companies: SDI FUL PURP OSI IXI BSE BRSD ATM
This quarter’s key observations
• Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move.
• Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1
Companies: CNIC BIG DEVO LBG OTMP SYS
NESF has boosted its effective electricity price hedging with the winning of 86W under the UK’s CfD renewable support scheme. This provides an index-linked 15-year income stream providing a strong underpinning to the fund’s earnings.
Companies: NextEnergy Solar Fund Ltd
Purplebricks full year results provides the detail behind its May pre-close update (i.e. 40,141 instructions; £70m revenue; £8.8m EBITDA loss and £43.2m cash) and details Purplebricks’ plan to return to operational cash generation.
Companies: Purplebricks Group Plc
Companies: Belvoir Group PLC (BLV:LON)SDI Group plc (SDI:LON)
Trident Royalties Plc (AIM: TRR) has, this morning, provided an update on its activities undertaken during the quarter ended 30 June 2022. Most of the elements of the update had already been announced in another busy quarter for the company as management finessed existing contracts. Momentum remains powerful with a 155% QoQ (15x YoY) increase in net revenue to $5.7m. The contributory components of this were varied with Koolyanobbing comfortably ahead of our forecasts whilst the gold offtake port
Companies: Trident Royalties Plc
Enclosed is our weekly round-up of news and updates from the professional services sector.
Companies: Personal Group Holdings Plc