This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Commenting on Cobham’s big fall on Thursday, Mike van Dulken, head of research at Accendo Markets says in an email:”Today’s update suggests not only will 2016 profits miss targets, but 2017 will remain tough. To make matters worse, the key KC-46 tanker programme in conjunction with Boeing is set to cost Cobham £150m more than anticipated. And just to stick the knife in, a balance sheet review has uncovered the need for myriad exceptional non-cash goodwill and intangible impairment charges, totalling a whopping £574m, to “reset the group to a more prudent level””
Henry Croft, of Accendo Markets, said: “Calls for a positive open come after Wall Street completed its first Grand Slam – the four main indices all closing at fresh all-time highs – on Friday as US equities continue to rally in expectation of Donald Trump’s tax reform and a successful two-day Japan-US summit in Washington. This optimism, however, is being offset by rising geopolitical concerns following North Korea’s successful missile test on Sunday whilst a weaker Dollar in Asian trading weighs on the foreign earnings heavy UK 100 .”
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
Comments are closed.