Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LONDON STOCK EXCHANGE GROUP. We currently have 9 research reports from 3 professional analysts.
|24Nov16 11:23||RNS||Form 8 (DD) - London Stock Exchange Group plc|
|21Nov16 01:00||RNS||LSEG to acquire Mergent Inc.|
|18Nov16 08:42||RNS||Form 8 (DD) - London Stock Exchange Group plc|
|10Nov16 10:25||RNS||Form 8 (DD) - London Stock Exchange Group plc|
|01Nov16 10:07||RNS||Form 8 (DD) - London Stock Exchange Group plc|
|25Oct16 10:07||RNS||Form 8 (DD) - London Stock Exchange Group Plc|
|24Oct16 11:55||RNS||Form 8 (DD) - London Stock Exchange Group Plc|
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Research reports on
LONDON STOCK EXCHANGE GROUP
LONDON STOCK EXCHANGE GROUP
Positive on revenues, higher than expected total expenses not an issue...
04 Aug 16
LSEG reported a good set of numbers, especially on revenues which, aside topping estimates by 3.5%, were up 7% yoy (on an organic and constant currency basis). Total expenses were, however, short of expectations with a 5.3% miss driven by higher employee costs. Operating profit was therefore in line with expectations and 5% higher yoy. No material information regarding the ongoing merger was released. Total operating profit was -9% yoy as exceptional transactions costs (linked to the sale of Russell investment) were incurred.
06 May 16
"Equities in London are expected to open on a downbeat note, with the FTSE-100 expected to fall initially around 15 points, before testing its technical support at the 6,100 level. After early strength, the US markets gave back gains made on the back of firm oil and energy prices as investors focussed back on a relatively dull earnings season, growing political uncertainty and lacklustre economic data. Recent strength in gold and bond markets serves as a reminder of investor's continuing concerns for the global economy. Key macroeconomic data due today from the US includes the monthly non-farm payroll employment report, which may determine both expectations for the Fed's interest rate policy and sentiment for the coming week. In the UK, markets await this morning's release on the Halifax house price index and AGMs from Alliance Trust, RSA Insurance and Man Group, together with trading statements from BBA Aviation and International Consolidated Airlines." - Barry Gibb, Research Analyst
Is this really the end? Not so sure...
04 May 16
ICE announced during its Q1 16 earnings release that it won’t be proceding with a bid on the LSEG as we had been expecting for weeks with a high probability. ICE justified the move as “following due diligence on the information made available, ICE determined that there was insufficient engagement to confirm the potential market and shareholder benefits of a strategic combination”. This is at first glance a courteous way to define LSEG’s management behaviour not to cooperate. As confirmed by ICE’s CEO, Jeffrey Sprecher, ICE’s board had tried and failed to arrange meetings with the LSEG. Following the announcement, the LSEG share dropped while the Deutsche Boerse share gained, coming back to pre ICE’s announcement level, respectively around 2600p and €75.5.
Where are we now? Still bullish on the stock
04 May 16
More than two months after the Deutsche Boerse/LSEG merger announcement which was immediately followed by ICE’s formal interest in the latter, the share price of the UK stock exchange is 7% lower than its highest levels (around 2900p). Our target price is still pointing at 3160p with an add recommendation and, more importantly, based on our SOTP valuation, better reflecting the speculative environment, our target price is at 3500p. This takes into account a probable counter-bid by another major stock exchange, be it HKEx (Hong Kong Exchanges), CME or especially ICE followed then by another bid by a willing Deutsche Boerse. We had indeed estimated last time that even with a 20% and 30% premium on the share price (respectively at 3444p and 3730p), that it would still be profitable for DB (no earnings dilution) if financed in cash once cost synergies are taken into account.
Still much room for the bulls...
02 Mar 16
It is now clear that LSEG will be either merging with Deutsche Boerse or purchased by a non-European giant stock exchange, be it ICE (which confirmed yesterday its interest), CME or even the Hong Kong Exchanges and Clearing. All these could potentially pay for LSEG via a share swap, Deutsche Boerse being at a disadvantage in terms of market cap. Supposing another 20% premium is added to LSEG, Deutsche Boerse’s share in the new entity would roughly fall to below 50%. Absorbing LSEG would be vital for DB (which is at risk of competing with a new European mastodon, be it ICE-LSEG or CME-LSEG), and we have simulated the potential use of cash by DB to finance the acquisition using our M&A tool.
LSEG and Deutsche Boerse on the brink of merging...
23 Feb 16
The London Stock Exchange Group and Deutsche Boerse confirmed today they are in merger talks. If this merger succeeds, Deutsche Boerse and LSEG would own respectively 54.4% and 45.6% of the new mastodon. Our opinion is that the merger will be value-accretive for shareholders *once/if* it gets both shareholders and (above all) regulatory approval (souvenirs from the last merger attempt between DB and YSE-Euronext are still here).
Positive returns from all asset classes in Q316
28 Nov 16
Tetragon Financial Group (TFG) reported fair value earnings of US$49.7m for the third quarter of 2016, with positive contributions made by all asset classes. NAV total return was 1.3% for the quarter and 7.8% for the nine months to 30 September 2016. Having completed a US$100m tender offer in June 2016, TFG commenced a US$50m tender offer on 9 November 2016, which should be meaningfully accretive to NAV per share given the current wide share price discount to NAV. Consistent with previous years, the third interim dividend was held in line with the second interim, confirming TFG’s 5.9% yield.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Small Cap Breakfast
28 Nov 16
Warpaint London—Schedule one update. Raising £2.5m at 97p. Expected mkt cap £62.6m vs revenues of £22.3m Walls & Futures REIT — Has raised £1m at £1 to acquire, refurbish or develop residential properties in the UK . Due to arrive on ISDX on 29 November Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Interims reveal value creation
28 Nov 16
In June Draper Esprit was listed on the LSE. Today its maiden interim results reveal substantial progress since IPO. In addition to strengthening the executive team with the appointment of Ben Wilkinson as CFO, Draper Esprit has created shareholder value through new investment and realisations.