Sterling Edges Lower After UK PMI Data -2-

0913 GMT - Pebble Group's update echoed the confident tone of its full-year results, Shore Capital says in a note after the provider of technology to the promotional-products industry said it sees its first-half revenue and profit ahead of the previous comparable period. "We expect both of Pebble Group's businesses to deliver attractive growth by bringing their competitive strengths to bear across a very large and highly fragmented marketplace," analyst Roddy Davidson writes. The stock's current valuation falls short of reflecting its growth potential and attractive fundamentals, Davidson adds. Shore has a buy rating on the stock. Shares are up 2% at 102.5 pence. (elena.vardon@wsj.com)

---

Indivior Opioid Reversal Spray's US Approval Boosts Strategy Support

0859 GMT - Indivior's diversification strategy as well as its M&A execution and portfolio bolstering in core competence areas are expected to be supported by the market, Jefferies writes in a note after the pharmaceutical company's opioid reversal nasal spray was granted approval by the FDA. "In our view, this was largely expected by the market, but it does boost support for INDV's strategy," analysts at the U.S. bank say. Pricing for the Opvee nasal spray is yet to be confirmed, but the group has previously indicated peak sales potential for $150 million to $250 million, adding that its annual guidance assumed the medication's approval and fourth-quarter launch. Jefferies rates the stock buy. Shares rise 1.0% at 1,516 pence. (elena.vardon@wsj.com)

---

Avon Protection's New Strategy Should Be the Focus

0851 GMT - Avon Protection's 1H will likely prompt consensus downgrades, but the new strategy should appeal investors, Jefferies analysts write in a research note. Under the leadership of new CEO Jos Sclater, the London-listed manufacturer of gas masks, helmets and body armor has outlined a new strategy to enable it to deliver on its potential over the next five years. "The significant self-help in the strategy should appeal, and while the market will want a greater understanding of the work needed and the overall long-term opportunity, this is a good start," the analysts say. Jefferies has a buy rating on the stock. Shares are down 10.8% at 865.00 pence. (christian.moess@wsj.com)

---

BT Edges Lower After Altice Stake-Building

0847 GMT - BT Group shares edge 0.3% lower after French billionaire Patrick Drahi's Altice UK increased its stake in the U.K. telecom to 24.5%, but said it didn't plan to make a bid to take over the company. "Altice is continuing to deny any plans to make an offer for the business, but the move will raise eyebrows, particularly given the national security sensitivities around BT and its assets entering foreign ownership," AJ Bell investment director Russ Mould writes. (philip.waller@wsj.com)

---

Cranswick Booked More-Than-Solid FY23 Results

0844 GMT - Cranswick fiscal 2023 results are more than solid, after the food producer posted another year of progress against significant headwinds, delivering sales and profit growth, Shore Capital analysts Darren Shirley and Clive Black write in a research note. In addition, its new partnership with Pets at Home is a welcome step forward for its vertically-integrated pet food business, they say. Shore acts as broker on the stock and as such doesn't give recommendations. Shares are up 5.0% at 3,298.00 pence. (christian.moess@wsj.com)

---

Portmeirion's 2H Seems Promising

0833 GMT - Portmeirion Group's second-half visibility looks promising and its investment case is solid, Shore Capital says in a note after the pottery company said its Christmas order book is ahead of the equivalent period last year. "Portmeirion's six brands have generally seen resilient trading in their end markets despite the macro-economic uncertainty and some increased consumer caution in the USA in 2023 to date," analysts Robert Sanders and Bradley Hughes write. They note the share price has performed well since the final results; but that valuation metrics remain substantially below its peers and its historic trading range, adding they believe the share price could exceed 700 pence and still represent good value. Shares fall 10% at 455 pence. (elena.vardon@wsj.com)

---

UK March 2051 Index-Linked Gilt Trades Cheap Ahead of Auction

0832 GMT - The U.K. 0.125% March 2051 index-linked gilt trades at cheap levels ahead of Tuesday's U.K. Debt Management Office auction of GBP750 million in the bond, say RBC Capital Markets analysts in a note. The auction is likely to attract investor appetite due to cheap pricing, RBC says. "Given the technically significant levels we are at ahead of the April CPI print on Wednesday, we could very well see some appetite from investors," the analysts say. (miriam.mukuru@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

May 23, 2023 05:35 ET (09:35 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.