UK100

UK 100 equity research

Explore the most viewed and latest equity research and media content for the top 100 largest listed companies in the UK.

UK 100 Equity Research

Broker research, valuations, & analysis on the UK 100

28 Jun 17

Delivering Quality

Imperial Brands’ (IMB LN, BUY, T/P 5100p) hosted an investor webinar yesterday, 27th June. Alison Cooper, CEO chaired the webinar with Amal Pramanik focusing on portfolio opportunity and Marcus Diemer on portfolio strategy. The emphasis of the webinar was acceleration of the principal growth brands, where the company targets 1%-4% revenue growth in FY2018. The webinar also included a deep dive into brand migration and rationalisation. Overall, we perceive the updates to be positive.

Companies: Imperial Brands

10 Apr 17

UK Housebuilding Sector: Q1 2017

Baron King of Lothbury, also known as Mervyn King former Governor of the Bank of England, is married to Barbara, a Finnish lady. She was his girlfriend in 1970 but distance and steam-driven telecoms conspired to keep them apart. Barbara went on to marry someone else and divorce - before being reunited with King in the late 1990s. They married in 2007 and King, who had never had children, was presented with two step-children and four grandchildren; and, in a Sunday Times interview, he quoted the Finnish apothegm “Grandchildren are the dessert of life”.

Companies: WJG CRST RDW BVS BDEV PSN TW/ MCS CRN BKG BWY INL

16 Feb 17

Shire, The Drugs Are Working… Buy

Shire PLC (SHP.L) reported strong Q4-16 results today, with growth across all therapeutic areas contributing towards double digit underlying earnings growth, strong cash generation and a very positive 2017 outlook statement. Two key business areas, those of Genetic Diseases & Internal Medicines grew by 14% and 17% respectively, ahead of management’s expectations. Trading on only 11.6x FY-17 EV/EBITDA, this company is undervalued we believe. Putting it on the multiple it deserves, around 14x, we arrive at our target price of 6200p and thus reiterate our Buy recommendation.

Companies: Shire

29 Jun 17

C&C - Capital Markets Day

The Scottish government, an administration which has no powers to raise duty but has powers to manage the region's NHS on an independent basis has implemented Minimum Unit Pricing for alcoholic drinks. Unusually high per capita consumption of alcohol in Scotland was responsible initially for the move towards minimum pricing. Importantly, a minimum price is being set for alcohol in its own right rather than for an alcoholic drinks category.

Companies: Diageo

14 Jun 17

3i Group – Action’s execution (not its ambition) is the focus

Since the publication of its year-end results, 3i has re-rated from a 37% premium (828.5p post results) to a 47% premium (901.5p) on the back of the Action’s (c30% of NAV) investor day presentation. In our 22nd May result’s comment, we justified a 37% premium and can do so for a 47% premium backed Action’s trajectory.

Companies: 3I Group

14 Jun 17

Subprime 2.0?

Expectations of double-digit growth in 2017 PBT and EPS are looking increasingly optimistic to us given the headwinds in US automotive and Middle East aircraft markets. While GKN has invested heavily in higher-value and next generation products since the 2008 crisis, its profitability is still vulnerable to sudden changes in output. We are now forecasting 2017 PBT and EPS of £666m and 30.1p, around 6% and 10% below mean consensus, respectively. With the stock looking fully valued at 8.7x 2017 EBITDA, we expect a period of underperformance as consensus expectations are cut. We move our recommendation to SELL (HOLD).

Companies: GKN

10 May 17

Continuing to focus on execution

Smith & Nephew's Q117 demonstrated a return to double-digit growth in emerging markets, with China growing 14% in the quarter. Alongside completion of its restructuring and focus on the execution of improved innovation and efficiency, we believe this improvement in emerging markets will keep S&N on track to meet its current revenue growth (3-4%) and trading profit margin targets for FY17.

Companies: Smith & Nephew

07 Jun 16

The Cybersecurity Rebellion: “No, I’m Spartacus!”

Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.

Companies: BA/ BVC BLTG CHRT CLST CNS DFX ECK EXPN GBG IGP MPAY NCC OSI SCH TERN

19 Jun 17

Satisfactory beginning; receding headwinds to improve growth momentum

After a disappointing end to FY 16, Smith & Nephew (S&N) exhibited improved sequential sales evolution in Q1 17 (trading update, only sales disclosed) – underlying sales grew 3% (the highest since Q1 16) to $1.1bn, in line with consensus expectations. However, a negative disposal impact of 2% and a currency headwind of 1% neutralised the underlying expansion, resulting in the reported growth being flat. On a geographical basis, the underlying recovery was primarily driven by the strong uptick in emerging markets growth (12% vs. 3% in Q4 16 and -6% in Q1 16) on the back of a sturdy Chinese performance (+14%) and annualisation of the Gulf headwinds. Meanwhile, established markets (including both the US and other established markets) remained weak, recording an underlying growth of 1%. Notably, franchise-wise (underlying basis), advanced wound care turned positive (1%; after remaining flat or negative throughout FY 16) while knee implants (5%. vs. +9% in Q1 16), sports medicine joint repair (7% vs. 11% in Q1 16), trauma & extremities (5% vs. -7% in Q1 16) and advanced wound devices (+16% vs. Q1 16: +11%) all contributed healthily. Conversely, hip implants remained flat (vs. +4% in Q1 16) while weak arthroscopic-enabling technologies (-1% vs. Q1 16: +4%) and advanced wound bioactives (-8% vs. Q1 16: -4%) adversely impacted the performance. Based on current exchange rates, management now expects a currency headwind of 0.6% (previously 1%). Factoring in the reduced currency headwind, management has slightly increased its reported revenue growth estimate to 1.6-2.6% from the previous 1.2-2.2% while maintaining its underlying revenue guidance of 3-4%.

Companies: Smith & Nephew

05 Jun 17

London Stock Exchange - 1000 Companies to Inspire Britain

02 Jun 15

Workshare - ELITE at London Stock Exchange

03 Jun 15

Celtic Renewables - ELITE at London Stock Exchange

02 Jun 15

RealityMine- ELITE at London Stock Exchange

14 Feb 17

London Stock Exchange Group - Your Guide to ESG Reporting

02 Jun 15

Independent Vetcare - ELITE at London Stock Exchange

03 Jun 15

Clinova - ELITE at London Stock Exchange

02 Jun 15

BE-Thinking - ELITE at London Stock Exchange

02 Jun 15

Swoon Editions - ELITE at London Stock Exchange

10 Feb 17

London Stock Exchange - Highlights from Cape Town

13 Apr 17

London Stock Exchange - Companies to Inspire Africa

02 Jun 15

Smarkets - ELITE at London Stock Exchange

14 Jun 17

NHAI - Market open

03 Jun 15

Guidance Marine - ELITE at London Stock Exchange

04 Jul 14

Executive Interview - Rolls-Royce

Latest Content

Diageo

C&C - Capital Markets Day

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29 Jun 17
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Dekeloil Public Dixons Carphone

Breakfast Today

"You can't keep a good market down. Despite its long list of woes, ranging from the IMF's growth forecast downgrade, the Senate delaying the Healthcare Bill, the second global Cyber Attack and Google's EU fine, US equities yesterday were firm from the start, recouping losses on Tuesday which saw the Dow Jones suffered its biggest drop in more than a month, to finish with all three-major average closing near the session's highs. They even shrugged off a National Association of Realtors report showing pending home sales in the US unexpectedly decreased for the third consecutive month in May, which is the latest in a long list of data that suggests US economic momentum is finally slipping. The Nasdaq led the way once again, with most giant tech stocks bouncing while its biotech index was also sharply up. In the wider market, Steel was an outstanding sector, driving the NYSE Arca Index up by 3.9% on hopes the White House will soon impose penalties on countries dumping in the US; Financials were also boosted following the Fed's approval of 34 banks' capital plans, which is now expected to release capital for higher dividend payouts; elsewhere Trucking and Housing saw strength, moving higher along with most of the other major sectors, while also Oils benefitted from an EIA reported detailing a sizeable weekly stock decline. Sceptical analysts, however, pointed out that any output decline was probably more the result of Tropical Storm Cindy which knocked out activity in the Gulf of Mexico last week, but has since come back on stream. Treasuries meanwhile continued to see modest weakness, taking the benchmark ten-year yield up by 3 basis points at 2.228%. Asia celebrated the US market performance, putting in convincingly gains across all its regional bourses. Australia's S&P/ASX 200 advanced over 0.9%, building on Wednesday its largest one-day gain in two weeks, with its banks amongst the best performers. Elsewhere, the Hang Seng was powered by demand for HSBC (HSBA.L) and Standard Chartered (STAN.L). The Nikkei gave back some of its early strength due to a firming Yen, while US tech advances boosted the demand for the heavily weighted South Korean KOSPI index. This optimistic mood was not shared during yesterday's European session, however, with Eurozone markets pulled down by a strong Euro, as it headed for its highest level in a year on traders interpreting Tuesday's ECB President's speech as paving the way for a scaling back of monetary stimulus, even if most still consider tapering itself is unlikely to commence before Q1'2018. Picking up the mood from Tuesday's falling overnight markets, the STOXX Europe 600 opened sharply down with techs, utilities and basic materials under most pressure. The surprise US rally, however, rebuilt confidence sufficient for the Index to eventually claw its way back to unchanged, led by recoveries in the FTSE MIB and IBEX 35, although the DAX and CAC-40 still closed with modest losses. The mood in London deteriorated once again as the Bank of England echoed its continental peer by hinting at a reduction in monetary stimulus. Sparking a 1% rise in Sterling by noting "some removal of monetary stimulus is likely to become necessary", the Governor also made it clear that economic conditions need to improve first. With lower oil prices seen taking the sting out of inflation figures, most traders still consider he will continue to do his utmost to defer such a move into 2018. UK macro data due today includes May Consumer Credit, Mortgage Approvals, and M4 Money Supply; traders will also be listening out for feedback from today's BBA Annual Retail Banking Conference, which lists senior speakers from both Government, BoE and FCA. The EU offers June Services Sentiment, Consumer and Industrial Confidence, Economic Sentiment Index and Business Climate data. The US will detail weekly Initial Jobless, Q1 GDP and Personal Consumption Expenditures, while the Fed's James Bullard is due to make a speech. UK corporates due to release earnings or trading statements include DS Smith (SMDS.L), Purplebricks (PURP.L), JD Sports (JD..L), Greene King (GNK.L), John Wood (WG..L) and John Laing (JLG.L). Theresa May's meeting with German Chancellor Angela Merkel in Berlin today ahead of the G20 summit in Hamburg may also provide some interesting Brexit soundbites, ahead of which London equities are seen simply riding on the back of the overnight markets. The FTSE-100 is seen rising 35-plus points during this morning's early trading."

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29 Jun 17
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Randgold Resources SolGold

SP Angel – Morning View

Phoenix Global Mining* (PGM LN) 4.125p, Mkt Cap £9.5m – Admission to AIM | Randgold Resources (RRS LN) 6995 pence, Mkt Cap £5.98bn –Massawa feasibility timetable | SolGold* (SOLG LN) 39.5p, Mkt Cap £597.6m – Assay results from hole 23R at Cascabel

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29 Jun 17
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Hargreaves Lansdown

FCA asset management shake up: Which firms are affected?

City regulator says investment managers need to improve governance, and make fees and charging more transparent

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28 Jun 17
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Imperial Brands

Delivering Quality

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28 Jun 17
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THE NAKED FUND MANAGER - Corporates need to up their game

Here are four easy things companies can do to better communicate with investors

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21 Jun 17
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Provident Financial

Provident shares fall after profit warning

Provident said the reorganisation of its home credit business would hit profits more than previously expected.

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21 Jun 17
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Whitbread

Whitbread boosted by strong sales at Premier Inn

Hotel chain saw sales rise twice as fast as the comparative period last year, thanks to resilient market and 9000 new rooms

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21 Jun 17
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Whitbread

Q1 trading enough for some relief

Q1 trading is encouraging overall, with positive Costa LFL and robust Premier Inn RevPAR. FY18 consensus looks appropriately conservative, with no change expected at this early stage of the year. At c.10x FY18 EBITDA the valuation feels well poised, with upside from Costa initiatives likely to be capped by challenging UK consumer/high street dynamics. HOLD. Call 7:45am.