This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
Engine-maker Rolls Royce may be sensitive to Airbus’ ending production of the A380 super-jumbo from 2021, due to flagging demand and Emirates amended 70 existing orders in favour of smaller more efficient A330neo and A350-900 models. All 3 are powered by Rolls Royce engines..
AstraZeneca Q4 constant FX total revenue +14% (FY: -2%), beating consensus, core op. profit +23% (FY: -17%). Tagrisso Q4 +98%, Nexium -6% (beat), Crestor -38% (beat), Symbicort -13% (miss), Brilinta +26% (beat). China sales +25%. FY dividend unchanged. FY’19 sales seen growing by high single-digit percentage and $3.50-3.70 core EPS.
Paddy Power Betfair to appeal legacy tax rulings of €40m against Betfair in Germany and €15m against paddypower.com in Greece, both well above what each brand ever generated there. easyJet in discussions with Italian state-owned rail operator Ferrovie dello Stato Italiane and Delta Air Lines to form JV for future operations of Alitalia.
Micro Focus extends buyback by $110m (+27.5%). Will return proceeds of $2.5bn SUSE sale. Pro-forma 12-month revenues -5.3% beats 6-9% guidance (Product portfolio -7.1%, expected to moderate to -4% to -6%) adj. EBITDA +9.2%, free cash flow +4.5%, annualised div +14.5%.
Coca-Cola HBC FY volumes +4.2%, constant FX revenue +6% (in-line), constant FX net sales per unit case +1.7%, comparable EBIT +9.6% (in-line), cash flow -13.1% after €49m increase in net capex. FY dividend +5.6%. FX headwinds slightly above expectations, sees ~€50m ‘19 headwinds. Expects low single digit rise in 2019 input costs per case. Restructuring to yield €23m in FY‘19.
ConvaTec reports “disappointing results”: FY revenues +3.8% (+2.7% constant FX, +0.2% organic) EBIT +8%, adj. EBIT -6%; 2019 guidance organic revenues +1% to +2.5%, adj. EBIT margin 18-20% (more contraction). Still looking for permanent CEO.
Indivior Q4 net revenues -11%, adj. operating profit +11%, adj. Net income +24%, cash higher; US market growth more than offset by US SUBOXONE Film share loss; Unable to provide guidance until May, given uncertainties over US market for SUBOXONE Film and generic alternatives.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Close | High | Low |
| InterContinental Hotels | 2.2% | 2.5% | -1.5% |
| Smurfit Kappa | 7.0% | 7.0% | 0.4% |
| Tullow Oil | 3.9% | 6.0% | -0.9% |
| Galliford Try | 6.0% | 8.8% | 0.3% |
| Dunelm | 3.1% | 7.4% | 2.5% |
| Hochschild Mining | 0.8% | 0.8% | -2.3% |
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of Research