Proactive Investors -
- FTSE 100 retreats below 7,900 level
- US stocks seen pushing higher at open
- Aviva gains after results, share buy-back
ITV switched on
Deutsche Bank analysts have upgraded their rating for ITV PLC to ‘buy’ from 'hold' in the wake of the broadcaster’s annual results.
The note itself was fairly downbeat as the analysts said the European media market was facing a number of challenges, including a need to invest, a battle of eyeballs and a fall in advertising spend.
To add to the pain, legacy broadcasters are now seeing competition for their share of ad revenues from streaming services such as Netflix and Amazon, which have joined the fray.
On ITV, however, the Deutsche Bank analysts said: “We turn more positive, macro risks aside. We believe its streaming strategy appears to be the most appropriate in the current environment and the investment needs appear to be well-managed.”
In early afternoon trade, the stock was changing hands for 87.62p. The consensus price target is 93p.
US jobless claims jump
US initial jobless claims increased by 21,000 to a seasonally adjusted 211,000 last week, the Labor Department said Thursday. The four-week average of weekly claims, which smooths out volatility in the weekly numbers, rose slightly to 197,000.
Economists polled by The Wall Street Journal had estimated jobless claims rose slightly to 195,000 last week.
Weekly jobless claims have remained near or below the 2019 pre pandemic average of about 220,000 for several months, despite job cuts at large employers in white-collar industries such as technology, finance and real estate.
There were 10.8 million job openings in January, the Labor Department said this week, and employers added more than half a million jobs that month while the unemployment rate fell to 3.4%, its lowest level since 1969.
The numbers are a pointer towards the monthly US non-farm payrolls report due to be released tomorrow, which is especially key after the comments this week from Federal Reserve chair Jerome Powell indicating US interest rates can remain higher for longer.
London's movers
Here’s a quick round-up of the biggest risers and fallers on the junior market today.
IQE PLC plunged over 30% as the supplier of compound semiconductor wafer products warned that a reduction in customer orders and forecasts is expected to result in a year-on-year decline of approximately £30mln in reported revenues for the first half of 2023.
NWF Group PLC saw its shares jump nearly 7% higher after the AIM-listed firm said it anticipates that its full-year result will be "significantly ahead of market expectations".
Hammerson PLC shares fell over 12% after the property group failed to pay a final dividend and as asset valuations came in below City forecasts.
Jarvis Securities Plc was jolted 13% lower after the retail stockbroker cut its dividend by 15%, reported a 20% decrease in pre-tax profit and said it is severing ties with some clients due to a regulatory process.
Billington Holdings Plc saw its shares advance 11% after the AIM-listed firm said it now expects profit before tax for the year ending 31 December 2023 to be ahead of market expectations, as well as that for the year ended 31 December 2022, as previously indicated.
Atlantic Lithium Limited saw its shares jump 26% higher as trading in the stock resumed on Thursday after it issued a response to a "false and misleading report" regarding its partner Piedmont Lithium Inc released by Blue Orca Capital on March 8.