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FTSE 100 Jumps as Invesors Weigh Powell Comments

FTSE 100 Rises in Early Trade

0832 GMT - The FTSE 100 index rises 1.4% to 7334.16, recovering after sharp losses on Thursday and a volatile week. "Comments from [U.S. Federal Reserve Chairman] Jerome Powell to the effect that it might be difficult to avoid a 'hard landing' in the U.S. economy dented sentiment, but overall it looks like equities are still trying to build a base," IG analysts say in a note. Heavyweight mining and oil stocks rise as the price of a barrel of Brent crude gains 0.8% to $108.35. Coca-Cola HBC gains 3.5% after Jefferies upgraded the stock to buy from hold. Software firm Sage Group rises 2.3% after announcing a slight fall in first-half pretax profit and maintaining its fiscal 2022 outlook. (jessica.fleetham@wsj.com)

 
Companies News: 

ContourGlobal Says 1Q Performance Was Better Than Expected

ContourGlobal PLC said Friday that its performance in the first quarter was ahead of expectations, with adjusted Ebitda growing 15% in the first quarter.

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Sage Group 1H Pretax Profit Fell Slightly After Investment to Accelerate Growth

Sage Group PLC said Friday that pretax profit for the first half of fiscal 2022 fell slightly after an additional strategic investment to accelerate growth.

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TT Electronics Early 2022 Revenue Rose on Growth in Markets

TT Electronics PLC said Friday that its revenue rose in the first four months of 2022, reflecting healthy growth in its focus end markets and strong customer relationships.

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Fulcrum Utility Services Swung to Ebitda Loss in 2H

Fulcrum Utility Services Ltd. warned Friday that it expects to report adjusted Ebitda of 0.5 million pounds ($610,050) for the year ended March 31, which suggests that the company swung to an Ebitda loss in the second half.

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Reabold Resources Appoints Chris Connolly as CFO

Reabold Resources PLC said Friday that it has appointed Chris Connolly as chief financial officer.

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Sivota Acquires Apester Majority Stake; Will Hold GBP11.5M Fundraising

Sivota PLC said Friday that it has acquired a 57.5% stake in digital marketing engagement platform Apester Ltd. for $12.0 million, funded through an 11.5 million pound ($14.0 million) share placing and subscription.

 
Market Talk: 

Coca-Cola HBC Shares Expected to Recover When Guidance Reinstated

0809 GMT - Coca-Cola HBC generates 20% of its profits in Russia and Ukraine, and therefore its shares have been hit hardest within the European beverages sector since the invasion, Jefferies says in a note. The U.S. bank estimates that the stock is now trading at a price-to-2023 earnings ratio of 13.8 times, a significant discount to the five-year average of 19.3 times, and raises its recommendation to buy from hold. Jefferies believes that the Coca-Cola bottler will reinstate guidance with the first half results, which should make the stock more investible and cause the shares to re-rate. (jaime.llinares@wsj.com)

Centamin Has Bright Future Ahead Despite Weak 1Q

0748 GMT - Centamin had a weaker-than-expected first quarter, RBC mining analyst Tyler Broda says, downgrading 2022 forecasts for production by 2.3% and Ebitda by 1.8%. However, Broda continues to see a lot of unpriced optionality in the gold miner and reiterates an outperform rating on the stock with a target price of 140 pence. "Despite current inflationary pressures, we continue to see a bright future for Sukari once the open pit finalises its accelerated stripping campaign and higher-grade resources are added to the underground model," Broda says in a note. Centamin is the owner of the Sukari gold mine in Egypt. The group also has exploration projects in Egypt, Burkina Faso and Ivory Coast. (jaime.llinares@wsj.com)

TT Electronics Early 2022 Update Seen as Encouraging

0741 GMT - TT Electronics' update for early 2022 was strong, with the company's full-year outlook unchanged despite inflationary pressures, Jefferies says. The outlook for 2022 underpins Jefferies' confidence in the U.K. electronics-component manufacturer meeting its margin target in fiscal 2023. TT's challenges from the second half of 2021 in power and connectivity have continued, but the sensors and specialist components and GMS divisions are performing robustly, Jefferies analysts say in a research note. "We continue to highlight the strategic transformation occurring across the business and reiterate our positive view," the investment bank says. Jefferies retains a buy rating and 275 pence target price on the stock. Shares are up 5% at 185.4 pence. (joseph.hoppe@wsj.com)

Vodafone Seen in a Tight Spot, Exposed to Inflation

0724 GMT - Vodafone Group is in a tight spot that necessitates cautious guidance next week and its lean cost base lacks obvious inflation safety valves, Jefferies analysts say in a research note. The U.K.-based telecommunications company faces a challenging backdrop amid competition and rising costs, they say, adding that operations in Germany are punching below their weight with weak pricing power. "We recognize the defensive attractions of large-cap telco. But Vodafone's credentials are undermined by forecast risk and a strategic plan not playing out," they say. Jefferies downgrades Vodafone to hold from buy and lowers its target price to 125 pence from 150 pence. Shares trade down 1.3% at 117.22 pence. (kyle.morris@dowjones.com)

TT Electronics' Update Looks Supportive Given Weak Share Price

0720 GMT - TT Electronics early 2022 update pointed to growth in-line with views and no change expected to forecasts, which investors will find very supportive after share price softness recently, RBC Capital Markets says. The electronic components manufacturer's high book-to-bill ratio sees order cover extending well into 2023 in many areas, and cost versus pricing is progressing in line with expectations, RBC analysts says in a research note. TT's update is especially good given recent share price weakness--having fallen 28% in the year to date--and its share price now appears highly attractive, the Canadian bank says. RBC retains its outperform rating and 325 pence price target on TT's stock. Shares were up 5% at 185.4 pence. (joseph.hoppe@wsj.com)

 

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

May 13, 2022 04:49 ET (08:49 GMT)

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