The week ahead: Glencore, WPP, Paddy Power Betfair
19th August 2016 17:02
by Lee Wild from interactive investor
Monday 22 August
Tuesday 23 August
Trading statement
AcenciA Debt Strategies, Eurocell, Hostelworld Group, Persimmon, PV Crystalox Solar, Cape, Hansteen Holdings, Rank Group
AGM/EGM
RedT Energy
Wednesday 24 August
With a credible plan to cut net debt to $17-18 billion by the end of 2016, investment bank UBS is confident in management and have a 'buy' rating on the stock.
Disposals of GRail for around $1 billion and its Vasilkovskoy gold mine for $1.5 billion should go through shortly, which will boost its cash pot from disposals to $5.7 billion. The fundamentals of the zinc and nickel markets have improved, although its exposure to thermal coal could be a sticking point.
The miner will report a 6% slip in adjusted cash profit to $3.9 billion, with net clean income plunging by a third to $303 million, forecasts UBS analyst Myles Allsop. Debt reduction will be weighted to the second half, with levels only expected to fall only $1.2 billion.
Upgrading its target price to 220p, the shares have double-digit upside from their current 197p price.
"We have a Buy rating on the stock as we believe management has a credible plan to materially cut net debt by end-17 which should drive a re-rating of the equity," adds Allsop.
Marketing and advertising group will also report its interim results on Wednesday and against a positive backdrop Numis Securities reckons earnings will meet expectations.
Analyst Paul Richards has pencilled in pre-tax profit of £675 million and earnings per share of 38p, in line with consensus. Net sales should jump 10.2% to £5.6 billion, underpinned by both organic and acquisitive growth, and currency tailwinds - 14% of its earnings was generated in the UK last year.
A target price of 1,775p is in line with the current share price and Richards reckons it’s a core holding in the sector.
Expecting a "solid" set of first half results from , Barclays is making room for cash profit of £176 million as a result of further market share gains and a positive Euro 2016.
Investors will look for guidance on cost synergies, wagered growth, full-year guidance and technology integration. News on the integration of the pair will also go down well seeing as the merger was just six months ago. A target price of 115p underpins its 'buy' rating.
"PPB is our Top Pick. We believe that the shares could double. There is a lot for management to potentially discuss at the H1 results, yet it is unclear how much management will want to give away," says analyst Patrick Coffey.
Trading statement
Hikma Pharmaceuticals, Atlas Mara Co-invest, Carillion, Paddy Power Betfair, Glencore, Headlam Group, WPP Group, Gresham Computing, Sportech, Costain Group, Xaar
AGM/EGM
Duet Real Estate Finance, Nb Distressed Debt Investment Fund Limited
Thursday 25 August
Trading statement
Playtech, Anglo Pacific Group, STV Group, Optibiotix Health, Spire Healthcare Group, Allied Minds, John Laing Group, Cairn Homes, CRH, Henry Boot, IFG Group, Macfarlane Group
AGM/EGM
The Fulham Shore
Friday 26 August
Bringing the week to a close, landscaping and stone paving group will release its first-half results Friday. Bucking the softening trends seen in the construction sector, Marshalls ended the opening six months of the year with an acceleration in sales growth.
"Whilst the macro outlook is clearly uncertain, we are leaving our earnings estimates unchanged (EBIT growth +20.2% FY16E)," says analyst Adrian Kearsey.
Following the group's pre-close statement, Kearsey only provides full-year forecasts, expecting sales of £400 million, pre-tax profit of £43.7 million and earnings per share of 17.5p. A dividend of 8.4p gives it a yield of 3%, growing to 3.3% the year after.
Trading statement
Lavendon Group, Computacenter, Industrial Multi Property Trust, Restaurant Group, Marshalls
AGM/EGM
Yujin International
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.