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
Investors are suing RBS (and Bank of America) in a US class action lawsuit alleging spread widening on Euro government bonds, violating federal antitrust law. This follows an EU antitrust ruling (31 Jan) accusing eight un-named banks of cartel-like price distortion 2007-2012.
Melrose to sell Waltherscheid Powertrain (previously known as GKN Off Highway Powertrain) to private equity and completed sale of SABCA (Belgian Aeronautics). Net proceeds circa £200m.
Legal & General 2018 op profit +10%, underlying net profit +7%; £10bn record annuity sales (gross written prems +3%), AUM +3% to £1tn, final div +7%; RoE normalises to 22.7% (25.6% in 2017, 18.8% in 2016; target 20%+), solvency II operational surplus +14%; largely unaffected by political/econ uncertainty; EPS growth to slow to 10% from 11%. Well placed for organic and M&A.
Just Eat FY orders +28% (UK +17%), revenue +43% (UK +27%, Intl +31%), underlying EBITDA +6%, swung to £101.7m pre-tax profit (from £76m loss), net op. cash flow -6%. Expects FY’19 revenue c.£1-1.1bn (implying +28-41% growth), adj. EBITDA c. £185-205m (+6-17%).
Paddy Power Betfair FY revenue +7% (+9% at constant FX), underlying EBITDA -5% hit by US investment (-3% ex-FX; +2% ex-US Sport Bet, upper end of guidance), Final div -1.5%. Proposes renaming itself Flutter Entertainment. 2019 trading in-line, good momentum across key divisions.
DS Smith agrees to sell Plastics division (£223m assets, £28m FY’18 pre-tax profit) to Olympus Partners for c. £450m. Trading strong and in-line, with good volume growth and market share gains.
(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 | Code | Close | High | Low |
| GVC | GVC | 4.7% | 5.1% | -4.4% |
| VODAFONE | VOD | -0.2% | 1.1% | -2.3% |
| NMC HEALTH | NMC | 6.7% | 6.7% | 3.2% |
| ASHTEAD | AHT | -0.5% | 1.3% | -2.9% |
| DIRECT LINE INSURANCE | DLG | -1.3% | 0.4% | -2.2% |
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Prepared by Michael van Dulken, Head of Research