DEALERS' EARLY CALL: 25.09.2020
UPGRADES AND DOWNGRADES
- Adidas PT Raised to 322 euros from 263 euros at Commerzbank
- Puma PT Raised to 89 euros from 78 euros at Commerzbank
- Pennon Cut to Equal-Weight at Barclays; PT 1,060 pence
- Berenbereg raises Pet
- After Hours Costco -3% on Covid expenses, EPS beat $3.13(est $2.85), Online Sales +93% YoY.
- Vodafone has contacted Masmovil to discuss a potential acquisition. Deal could be valued at EU6b, including debt – elEconomista.
- Aviva A consortium of German insurer Allianz & life insurer Athora Holdings is in advanced talks to buy Aviva’s French operations in a deal worth between €2-3bn – Reuters.
- Deutsche Telekom German Chancellor Merkel is lobbying to get Co access to China’s telephone market according to reports. Could allow Huawei to participate in Germany’s 5G network as part of any deal.
- Socgen believes 3Q trends confirm gradual recovery observed since mid-May. The worst is behind them having peaked in H1. Bank confirms 2020 cost of risk to be at low end of 70bps-100bp range, 2020 CET1 ratio to be at high end of 11.5%-12% range, From company presentation.
- Pennon impact of CV-19 broadly in line with assumptions of £10m. On track to deliver resilient results in line with expectations.
- Boohoo Publication of the independent review: Alison Levitt QC has identified many failings in the Leicester supply chain and recommended improvements to BOO related corporate governance, compliance and monitoring processes. She is satisfied that BOO did not deliberately allow poor conditions, neither did they profit from it. They are implementing 6 new actions to help corporate governance and raising standards across the supply chain and boost compensation and rights for workers. They can do all of this without impacting lead times or financial expectations.
- Wizz Air to operate at 50% of capacity in Oct, Winter to be similar.
- Camellia H1 exceptionally challenging, pays 102p special divi.
- Shaftesbury only 41% of HY rents collected and vacancy rate has ballooned from 4.8% to 9.7%. Outlook uncertain. Shares have been weak into this, no sign of a turnaround yet.
- Princess Private Equity (PEY LN) NAV as at 31 August 2020: +3.1% to €12.49 driven by portfolio developments.
- Lloyds ‘BUY’ In Tempus. “Hold for prospects of long-term recovery”.
- Next BUY’ in Investors Chronicle.
- HMSO results of rights issue, 94.9% take up..189,122,397m to place.
- Sale of Houses costing over 1 million pounds doubled last month – Rightmove. Londoners are looking for jobs outside the capital as the city struggles to generate new work. Indeed.com.
- Mothercare Finals. Progress continues on turnaround with new contractual arrangements with franchisees which should reduce working capital needs. Majority of stores now reopened however sales recovery been market specific, slower in tourist markets and where government restrictions remain.