';
//see which section to append to
if (data.ItemType && isInvestmentType(data.ItemType)) {
$('.jsInvestmentHeading').removeClass('.investmentHeading--hidden');
$(placeholder).insertAfter($investmentHeading);
} else if ((data.ItemType) && data.ItemType.toLocaleLowerCase() === 'manager') {
$managerHeading.removeClass('managerHeading--hidden');
$(placeholder).insertAfter($managerHeading);
}
}
},

removeFinished: function(data) {
//only select visible items as we have duplicates for wide and narrow view
var $favouriteItemToRemove = $('.jsFavouriteItem_' + data.ItemType + '_' + data.ItemID),
itemType = $($favouriteItemToRemove[0]).data('type'),
itemID = $($favouriteItemToRemove[0]).data('id'),
itemName = $.trim($('.favouritesItem__name', $($favouriteItemToRemove[0])).text()),
that = this,
message = itemName + ' has been removed from your favourites.' +
' Undo ';

$favouriteItemToRemove.remove();


favouritesWidget.displayMessage(message);
$('#undoLink').click(function(e) {
that.handleAdd({
ItemType: itemType,
ItemID: itemID,
ItemName: itemName
});
favouritesWidget.undoRemove(itemName, itemID, itemType);
e.preventDefault();
});

favouritesWidget.updateItemCounts();
if (document.citywire && document.citywire.pubsub) {
document.citywire.pubsub.publish('citywire.favourites.deleted.' + data.ItemType + '.' + data.ItemID);
}
favouritesWidget.setSize();
},

handleRemoveFinished: function(data) {
if (data.ItemID && data.ItemType) {
this.removeFinished(data);
}
},

addingFinished: function(itemData) {
var itemClass = 'jsFavouriteItem_' + itemData.ItemType + '_' + itemData.ItemID;
$.ajax({
url: '/favourites/getitemview.aspx?section=money',
data: itemData,
success: function(favItem) {

$('#' + itemData.ItemType + '_' + itemData.ItemID).remove();
if ($('#favouritesWidget').find('.' + itemClass).length === 0) {
if (itemData.ItemType && itemData.ItemType.toLocaleLowerCase() === 'manager') {
$(favItem).insertAfter($('.jsManagerHeading'));
} else if (itemData.ItemType && isInvestmentType(itemData.ItemType)) {
$(favItem).insertAfter($('.jsInvestmentHeading'));
}
favouritesWidget.updateItemCounts();
favouritesWidget.setSize();
}
},
error: function(error) {
favouritesWidget.handleError();
}
});
},
buyNow: function() {
var models = [];
if (isModalOpen === false) {
$('.jsfavouritesBuyButtonIcon').addClass('hidden');
$('#buyAllSpinner').addClass('busy');
$('.favouritesItem__checkbox:checked').each(function(index, favouriteItem) {

var $item = $(favouriteItem).closest('.jsFavouriteItem');
models.push({
ItemName: $item.data('name'),
ItemID: $item.data('id'),
ItemType: $item.data('type'),
BasketCode: $item.data('basketcode')
});
});

if (models.length

 

View the rest of this gallery online at http://citywire.co.uk/money/gallery/a1017473


Our daily roundup of analyst commentary on shares, also including Brewin Dolphin and Wincanton.

SSE dividend under threat, says Jefferies

Dividend sustainability is under threat at energy provider SSE (SSE) due to regulatory intervention in the UK, says Jefferies.

Analyst Ahmed Farman retained his ‘hold’ recommendation and target price of £14.00 on the stock, which was trading up 0.7%, or 10p, at £14.61 at the time of writing.

‘Full-year 2016/17 reported earnings per share was 125.75p, slightly ahead of the 122-125p range given at the pre-close update. In full-year 2017/18, SSE expects to continue to increase dividend per share by the retail prices index, with a dividend cover to the lower end of the range,’ he said.

‘[The] update suggests to us that SSE is unlikely to be able to maintain its dividend cover in the case of further punitive regulatory intervention in the UK. In such a case, the sustainability of SSE’s dividend will increasingly come into question.’

He added that the company had invested at ‘record levels’ over the past few years ‘in order to stand still from a profit perspective’ and with headwinds such as low power prices, it was becoming tougher to maintain the dividend.

", "copyright": "", "resourceID": 2667251, "imageContentID": 1017477 },
{ "src": "http://cdn.citywirecontent.co.uk/images/2017/05/17/1017475-System__Resources__Gallery_Image-1204639.jpg", "alt": "", "caption": "

Key stats
Market capitalisation £6,686m
No. of shares out 1,030m
No. of shares floating 1,023m
No. of common shareholders not stated
No. of employees 589
Trading volume (10 day avg.) 5m
Turnover £544m
Profit before tax £1,345m
Earnings per share 123.51p
Cashflow per share 125.44p
Cash per share 10.96p

Hargreaves Lansdown: British Land ‘uncomfortable’ about the future

British Land (BLND) may have posted positive full-year results but Hargreaves Lansdown says the company is ‘uncomfortable about the future’.

British Land’s full-year underlying profits – rental income minus expenses – rose 7% in 2016/17 to £390 million but the net asset value fell 0.4% to £9.5 billion, or 915p a share.

Although the group increased the dividend 3% and proposed another 3% rise for the coming year the shares were down 2.2%, or 15p, at 659p at the time of writing.

Analyst Nicholas Hyett said the headline numbers were ‘pretty good’ and dividend growth was of most importance to investors.

‘However, British Land is clearly uncomfortable about the future,’ he said.

‘Speculative developments have been reined right back and leverage is falling as the group sells some high profile assets, including a 50% stake in the Cheesegrater. That’s sensible given the group’s disproportionate exposure to the prestige London office space most likely to be hit if Brexit results in a mass exodus of bankers, lawyers and the like. However, it suggests the group feels there could be stormy weather ahead.’

", "copyright": "", "resourceID": 2667249, "imageContentID": 1017475 },
{ "src": "http://cdn.citywirecontent.co.uk/images/2017/05/17/1017476-System__Resources__Gallery_Image-1204640.jpg", "alt": "", "caption": "

Key stats
Market capitalisation £5,137m
No. of shares out 1,016m
No. of shares floating 694m
No. of common shareholders not stated
No. of employees 19489
Trading volume (10 day avg.) 2m
Turnover £1,457m
Profit before tax £211m
Earnings per share 20.72p
Cashflow per share 33.59p
Cash per share 21.17p

Merlin is undervalued, says Barclays

Alton Towers owner Merlin Entertainments (MERL) may not look cheap but Barclays believes there is a lot that is being undervalued.

Analyst Vicki Stern reiterated her ‘overweight’ recommendation and target price of 575p on the stock following a roadshow. The shares were trading flat at 502p at the time of writing.

‘One of the questions posed on the last roadshow we hosted with management was: ‘What is the market missing?’. With the stock trading at 22x 2017 price/earnings, one might argue “not much”, but in fact we think there is a lot that is being underestimated/undervalued,’ she said.

While Stern said the stock was ‘unlikely to ever look “cheap” on a one-year price/earnings given its growth characteristics’ there was more potential for the company thanks to an accommodation rollout, which she said was ‘potentially the most under-appreciated piece of the story’.

", "copyright": "", "resourceID": 2667250, "imageContentID": 1017476 },
{ "src": "http://cdn.citywirecontent.co.uk/images/2017/05/17/1017474-System__Resources__Gallery_Image-1204638.jpg", "alt": "", "caption": "

Key stats
Market capitalisation £924m
No. of shares out 283m
No. of shares floating 245m
No. of common shareholders not stated
No. of employees 1743
Trading volume (10 day avg.) 1m
Turnover £282m
Profit before tax £39m
Earnings per share 13.86p
Cashflow per share 18.93p
Cash per share 60.72p

Growth strategy proving successful for Brewin Dolphin, says Peel Hunt

Wealth manager Brewin Dolphin (BRW) has posted record growth inflows as it moves towards a growth strategy, which Peel Hunt is predicting to be a success.

Analyst Stuart Duncan retained his ‘add’ recommendation but increased the target price from 320p to 345p after interim results showed profits up 14% to £32.4 million and total net inflows of £600 million.

‘Although overall results were largely as expected, the highlight of the first half has been the organic growth rate of 7.6%, with record gross inflows generated,’ he said.

‘This confirms the change in emphasis towards growth, and the success of the strategy to enhance distribution.’

He added: ‘The stock now trades on a December 2017 enterprise value/ profits multiple of 15.1x, which like the rest of the sector has expanded over recent months – the multiple stood at c.13.5x back in January.’

The shares were trading down 0.8%, or 2p, at 327p at the time of writing.

", "copyright": "", "resourceID": 2667248, "imageContentID": 1017474 },
{ "src": "http://cdn.citywirecontent.co.uk/images/2017/05/17/1017478-System__Resources__Gallery_Image-1204642.jpg", "alt": "", "caption": "

Key stats
Market capitalisation £364m
No. of shares out 124m
No. of shares floating 115m
No. of common shareholders not stated
No. of employees 17500
Trading volume (10 day avg.) m
Turnover £1,147m
Profit before tax £61m
Earnings per share 47.36p
Cashflow per share 59.85p
Cash per share 21.25p

Liberum: positive momentum at Wincanton

Logistics specialist Wincanton (WIN) has posted full-year results slightly ahead of expectations and Liberum believes the positive momentum will continue.

Analyst Gerald Khoo retained his ‘buy’ recommendation and target price of 290p on the stock after the company posted year-on-year profit growth of 18%.

The shares were trading up 4.3%, or 12p, at 286p at the time of writing.

‘Encouraging results, slightly ahead of expectations, supported by contract renewals and new business wins,’ he said.

‘Profit growth rates were flattered by a weak comparative impacted by loss-making Pullman contracts that ended last year, but we believe there was good underlying progress in all areas. We expect more of the same in the new full year, supported by a steady stream of new business wins.’

Khoo added that despite the strong performance the valuation was still ‘attractive’.

", "copyright": "", "resourceID": 2667252, "imageContentID": 1017478 }] };

If you would like to receive news alerts on any of the stocks mentioned in The Expert View, click on the star icons below to add them to your favourites.

Key stats
Market capitalisation £14,705m
No. of shares out 1,005m
No. of shares floating 999m
No. of common shareholders not stated
No. of employees 21118
Trading volume (10 day avg.) 4m
Turnover £28,781m
Profit before tax £461m
Earnings per share 46.01p
Cashflow per share 126.28p
Cash per share 35.75p

SSE dividend under threat, says Jefferies

Dividend sustainability is under threat at energy provider SSE (SSE) due to regulatory intervention in the UK, says Jefferies.

Analyst Ahmed Farman retained his ‘hold’ recommendation and target price of £14.00 on the stock, which was trading up 0.7%, or 10p, at £14.61 at the time of writing.

‘Full-year 2016/17 reported earnings per share was 125.75p, slightly ahead of the 122-125p range given at the pre-close update. In full-year 2017/18, SSE expects to continue to increase dividend per share by the retail prices index, with a dividend cover to the lower end of the range,’ he said.

‘[The] update suggests to us that SSE is unlikely to be able to maintain its dividend cover in the case of further punitive regulatory intervention in the UK. In such a case, the sustainability of SSE’s dividend will increasingly come into question.’

He added that the company had invested at ‘record levels’ over the past few years ‘in order to stand still from a profit perspective’ and with headwinds such as low power prices, it was becoming tougher to maintain the dividend.

Key stats
Market capitalisation £6,686m
No. of shares out 1,030m
No. of shares floating 1,023m
No. of common shareholders not stated
No. of employees 589
Trading volume (10 day avg.) 5m
Turnover £544m
Profit before tax £1,345m
Earnings per share 123.51p
Cashflow per share 125.44p
Cash per share 10.96p

Hargreaves Lansdown: British Land ‘uncomfortable’ about the future

British Land (BLND) may have posted positive full-year results but Hargreaves Lansdown says the company is ‘uncomfortable about the future’.

British Land’s full-year underlying profits – rental income minus expenses – rose 7% in 2016/17 to £390 million but the net asset value fell 0.4% to £9.5 billion, or 915p a share.

Although the group increased the dividend 3% and proposed another 3% rise for the coming year the shares were down 2.2%, or 15p, at 659p at the time of writing.

Analyst Nicholas Hyett said the headline numbers were ‘pretty good’ and dividend growth was of most importance to investors.

‘However, British Land is clearly uncomfortable about the future,’ he said.

‘Speculative developments have been reined right back and leverage is falling as the group sells some high profile assets, including a 50% stake in the Cheesegrater. That’s sensible given the group’s disproportionate exposure to the prestige London office space most likely to be hit if Brexit results in a mass exodus of bankers, lawyers and the like. However, it suggests the group feels there could be stormy weather ahead.’

Key stats
Market capitalisation £5,137m
No. of shares out 1,016m
No. of shares floating 694m
No. of common shareholders not stated
No. of employees 19489
Trading volume (10 day avg.) 2m
Turnover £1,457m
Profit before tax £211m
Earnings per share 20.72p
Cashflow per share 33.59p
Cash per share 21.17p

Merlin is undervalued, says Barclays

Alton Towers owner Merlin Entertainments (MERL) may not look cheap but Barclays believes there is a lot that is being undervalued.

Analyst Vicki Stern reiterated her ‘overweight’ recommendation and target price of 575p on the stock following a roadshow. The shares were trading flat at 502p at the time of writing.

‘One of the questions posed on the last roadshow we hosted with management was: ‘What is the market missing?’. With the stock trading at 22x 2017 price/earnings, one might argue “not much”, but in fact we think there is a lot that is being underestimated/undervalued,’ she said.

While Stern said the stock was ‘unlikely to ever look “cheap” on a one-year price/earnings given its growth characteristics’ there was more potential for the company thanks to an accommodation rollout, which she said was ‘potentially the most under-appreciated piece of the story’.

Key stats
Market capitalisation £924m
No. of shares out 283m
No. of shares floating 245m
No. of common shareholders not stated
No. of employees 1743
Trading volume (10 day avg.) 1m
Turnover £282m
Profit before tax £39m
Earnings per share 13.86p
Cashflow per share 18.93p
Cash per share 60.72p

Growth strategy proving successful for Brewin Dolphin, says Peel Hunt

Wealth manager Brewin Dolphin (BRW) has posted record growth inflows as it moves towards a growth strategy, which Peel Hunt is predicting to be a success.

Analyst Stuart Duncan retained his ‘add’ recommendation but increased the target price from 320p to 345p after interim results showed profits up 14% to £32.4 million and total net inflows of £600 million.

‘Although overall results were largely as expected, the highlight of the first half has been the organic growth rate of 7.6%, with record gross inflows generated,’ he said.

‘This confirms the change in emphasis towards growth, and the success of the strategy to enhance distribution.’

He added: ‘The stock now trades on a December 2017 enterprise value/ profits multiple of 15.1x, which like the rest of the sector has expanded over recent months – the multiple stood at c.13.5x back in January.’

The shares were trading down 0.8%, or 2p, at 327p at the time of writing.

Key stats
Market capitalisation £364m
No. of shares out 124m
No. of shares floating 115m
No. of common shareholders not stated
No. of employees 17500
Trading volume (10 day avg.) m
Turnover £1,147m
Profit before tax £61m
Earnings per share 47.36p
Cashflow per share 59.85p
Cash per share 21.25p

Liberum: positive momentum at Wincanton

Logistics specialist Wincanton (WIN) has posted full-year results slightly ahead of expectations and Liberum believes the positive momentum will continue.

Analyst Gerald Khoo retained his ‘buy’ recommendation and target price of 290p on the stock after the company posted year-on-year profit growth of 18%.

The shares were trading up 4.3%, or 12p, at 286p at the time of writing.

‘Encouraging results, slightly ahead of expectations, supported by contract renewals and new business wins,’ he said.

‘Profit growth rates were flattered by a weak comparative impacted by loss-making Pullman contracts that ended last year, but we believe there was good underlying progress in all areas. We expect more of the same in the new full year, supported by a steady stream of new business wins.’

Khoo added that despite the strong performance the valuation was still ‘attractive’.



Source link