Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

The Expert View: Standard Life, SuperGroup, Consort Medical

Our daily roundup of some of the best analyst commentary on shares.

Apologies for the slightly shorter version of Expert View today. If you’d 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£9,971m
No. of shares out2,391m
No. of shares floating2,384m
No. of common shareholdersnot stated
No. of employees8224
Trading volume (10 day avg.)3m
Turnover£20,683m
Profit before tax£466m
Earnings per share19.60p
Cashflow per share-9,999,999.00p
Cash per share434.32p

*Correct as at 4 Sep 2014

Sweet deal for Standard Life

Standard Life (SL) has sold its Canadian business for £2.2 billion, a surprise deal that pushes the pension and investment group further towards its aim of becoming an asset manager.

Shore Capital analyst Eamonn Flanagan reiterated his ‘hold’ recommendation at 386p per share before the shares jumped 31p or 8% higher to 417p yesterday.

‘The disposal accelerates Standard Life’s strategy of asset gathering and asset management and removes a major exposure of the group’s balance sheet to [interest rate] spread and guarantee risk in our view,’ he said.

‘According to Standard Life the sale enhances its medium-term earnings profile, and combined with the Ignis purchase and the return of capital, should be earnings accretive. In addition, the group expects to maintain its progressive dividend policy.’

While Flanagan expected the market to respond ‘favourably’, he preferred Prudential (PRU) and Legal & General (LGEN) as he said they ‘remained cleaner ways to play the asset management sector’.

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£957m
No. of shares out81m
No. of shares floating40m
No. of common shareholdersnot stated
No. of employees2022
Trading volume (10 day avg.)0m
Turnover£431m
Profit before tax£27m
Earnings per share33.56p
Cashflow per share61.36p
Cash per share106.47p

*Correct as at 4 Sep 2014

SuperGroup a key buy for Peel Hunt

Peel Hunt analyst John Stevenson reiterated his ‘buy’ stance on SuperGroup (SGP) as shares in the fashion retailer soared 13% after a positive first quarter trading statement.

The Superdry brand owner leaped 145p closer towards Stevenson’s price target of £16.50, ending yesterday at £11.63 after revealing a 15.9% increase in sales and forecasting a year of profit growth.

‘Our forecasts are unchanged, although we note good progress in gross margin and the encouraging start to Q2, which is currently trending ahead of expectations,’ said Stevenson.

‘There remain several potential major events ahead, notably the possibility of a China joint venture and the potential to take control of US distribution, the latter of which would have a material positive effect on forecasts. Taken in conjunction with a strong underlying organic growth story and rising cash balance… SuperGroup remains a key buy.’

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£280m
No. of shares out29m
No. of shares floating27m
No. of common shareholdersnot stated
No. of employees657
Trading volume (10 day avg.)0m
Turnover£100m
Profit before tax£14m
Earnings per share46.21p
Cashflow per share68.17p
Cash per share88.28p

*Correct as at 4 Sep 2014

Tax cut produces upgrade for Consort Medical

Numis analyst Charles Weston upgraded Consort Medical (CSRT) from ‘add’ to ‘buy’ after the drug delivery specialist’s half-year results revealed its effective tax rate this year would be just 16% instead of the normal 21%.

Watson maintained his target price of £11.20 as the shares gained 36.5p or 4% to 951.5p.

‘Consort Medical has announced that trading is in line with expectations, with growth anticipated from existing and new programmes, and the potential for “inorganic opportunities”,’ he said.

‘Consort generates much of its profits from its own intellectual property, and it has today announced that its effective tax rate for the year to April 2015 is expected to be 16% due to the UK’s new patent box tax rules.’

Weston forecast earnings per share would grow 4% next year and by 10% by 2018. He anticipated more good news from the company, adding a potential takeover approach could not be ruled out.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter