Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

The Expert View: JD Wetherspoon, Clarkson and Vectura

Our daily roundup of analyst commentary on shares, also including CYBG and TT Electronics.

If you would like to receive news alerts on any of the stocks mentioned in The Expert View, click on the star icons below to add them to your favourites.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
If you would like to receive news alerts on any of the stocks mentioned in The Expert View, click on the star icons below to add them to your favourites.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Market capitalisation£1,398m
No. of shares out106m
No. of shares floating67m
No. of common shareholdersnot stated
No. of employees22780
Trading volume (10 day avg.)m
Turnover£1,661m
Profit before tax£202m
Earnings per share50.37p
Cashflow per share116.38p
Cash per share46.46p

Optimistic Peel Hunt upgrades JD Wetherspoon

Peel Hunt has upgraded pub chain JD Wetherspoon (JDW) as it expects it to continue its track record of beating expectations.

Analyst Douglas Jack upgraded his recommendation from ‘reduce’ to ‘hold’ and increased the target price from £11.00 to £12.00 prior to interim results. The shares rose 20p to £13.27 yesterday.

‘We believe JD Wetherspoon’s rating is full, at a material premium to its freehold peers, but it is developing a habit of beating expectations, benefiting from greater trading down than we expected,’ he said.

‘With 888 outlets, we estimate JD Wetherspoon’s food sales are the equivalent of almost 10% of the restaurant market.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Market capitalisation£1,003m
No. of shares out30m
No. of shares floating7m
No. of common shareholdersnot stated
No. of employees1079
Trading volume (10 day avg.)m
Turnover£238m
Profit before tax£36m
Earnings per share89.76p
Cashflow per share105.42p
Cash per share865.12p

Clarkson navigating calmer seas, says Liberum

Shipping services provider Clarkson (CKN) is seeing more balanced supply and demand, which Liberum says shows ‘encouraging progress’.

Analyst Gerald Khoo reiterated his ‘buy’ recommendation and increased the target price from £33.00 to £36.00 after in line full-year results that showed ‘improvements at broking and financial reflecting a combination of stronger shipping markets and the fruits of past management initiatives to strengthen and broaden the group’s market-leading positions’. The shares rose 50p to £33.40 yesterday.

Khoo noted the group’s strong, debt-free balance sheet and a 12% increase in the full-year dividend that was ahead of forecasts and ‘brought the group’s record to 15 years of consecutive annual dividend growth’.

‘There may be some disappointment on a lack of any additional return of cash to shareholders. However, it appears management is more optimistic on the prospect of investing capital to deliver improved returns,’ he said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Market capitalisation£528m
No. of shares out664m
No. of shares floating591m
No. of common shareholdersnot stated
No. of employees453
Trading volume (10 day avg.)4m
Turnover£-100,000m
Profit before tax£-100,000m
Earnings per share-9,999,999.00p
Cashflow per share-9,999,999.00p
Cash per share13.64p

Vectura asthma drug launch put back to 2019

Shares in Vectura (VEC) were hit by the news that the biotech firm needs to undertake more studies on its application for its generic Advair drug, which treats asthma.

Shore Capital analyst Tara Raveendran retained her ‘hold’ recommendation on the shares, which fell 2.2% to 79.6p yesterday.

‘Vectura and partner Hikma have announced an update on…its new drug application for a generic version of Advair,’ she said. ‘Following conclusion of the dispute resolution process, the US Food and Drug Administration has indicated the need for an additional clinical endpoint study.’

She said Hikma was already planning the study and ‘anticipates patient enrolment in the coming weeks and intends to submit the response to the regulation as early as possible in 2019’.

Raveendran said the drug could be on the market by late 2019.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Market capitalisation£2,810m
No. of shares out885m
No. of shares floating881m
No. of common shareholdersnot stated
No. of employees6040
Trading volume (10 day avg.)1m
Turnover£1,075m
Profit before tax£527m
Earnings per share17.31p
Cashflow per share30.43p
Cash per share1,090.42p

Jefferies upgrades CYBG after shares dip

Jefferies has upgraded CYBG (CYBGC), the banking group that owns Clydesdale and Yorkshire banks, after a pullback in the shares.

Analyst Kapilan Pillai upgraded his recommendation to ‘buy’ with a price target of 366p on the shares, which rose 2.6p to 318p yesterday.

‘We see the 8% pullback in CYBG shares year-to-date as a buying opportunity,’ he said.

‘We see CYBG as a big winner from the Royal Bank of Scotland remedies package, with SME customers likely to be on-boarded as soon as June. A previously aborted bid for Williams & Glyn was made in the knowledge that there was a 90% product capability match between the banks, with CYBG already making a push into its traditional heartlands of the Midlands and North West.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Key stats
Market capitalisation£381m
No. of shares out163m
No. of shares floating159m
No. of common shareholdersnot stated
No. of employees5770
Trading volume (10 day avg.)m
Turnover£360m
Profit before tax£37m
Earnings per share8.39p
Cashflow per share16.12p
Cash per share28.54p

TT Electronics powering up this year, says Berenberg

Electronics engineer TT Electronics (TTG) has had a transitional year and a new acquisition will help the business grow further, says Berenberg.

Analyst Anthony Plom reiterated his ‘buy’ recommendation and increased the target price from 245p to 265p. The shares fell 1.5p to 238p yesterday.

‘2017 was another transitional year for TT Electronics, with strong results across the board. The disposal of the transportation business leaves the company better aligned to faster growth and higher margin end-markets, and optically TT is now a far more attractive business,’ he said.

Plom added the potential acquisition of Stadium ‘looks attractive’ and TT also has ‘a further £90 million of mergers and acquisition firepower’.

‘We see scope for material near-term earnings upgrades and continue to believe TT can be materially bigger on a multi-year view,’ he said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Wealth Manager on Twitter