This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| Opening Price | Stop Loss | Profit Limit | Reward vs Risk | CFD Margin |
| 407p | 435p (28p/6.9% above) | 342p (65p/16.0% below) | 2.3x | 5% |
Observations – For
Observations – Against
We expect continued uncertainty over Greece and a Fed rate rise to impact financials stocks and those exposed to emerging markets which have benefited from low US rates and carry trades for so long.
ADN shares have been in a solid downtrend since mid-April’s 14yr highs when RBC Capital downgraded the stock and factored in increased fund outflows as clients move money elsewhere. H1 results mixed according to Peel Hunt with share buybacks failing to offset outflows and uncertainty remaining.
While broker 12-month target prices point to decent upside for the shares, consensus ratings are largely neutral suggesting indecision/uncertainty in the face of the falling share price trend.
Next Event: Q3 trading statement, end-July. Source: DowJones Newswires, Reuters News, Boomberg, Company website
Latest Broker 12-Month Consensus: 27% Buy, 59% Hold, 14% x Sell
29-Jun, RBC, Underperform, TP 440p; 26-Jun, HSBC, Buy, TP 495p; 18-Jun, Macquarie, Neutral, TP 471p; 15-Jun, SocGen, Hold, TP 485p; Keefe, Bruyette, Outperform, TP 520p; Cantor, Buy, TP 520p; 19-May, Goldman Sachs, Neutral,. TP 460p; 6-May, Peel Hunt, Buy, TP 490p; Liberum, Buy, TP 493p; 5-May, Morgan Stanley, Underweight, TP 695p
(Source: Bloomberg) (U = Upgrade / D = Downgrade)
| Share | 1wk | 1m | 3m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.7 | -8.5 | -12.2 | -8.7 | 6.7 | 57.3 | 82.9 | 215.0 |
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