Shares in Kier Group (LON:KIE) advanced today (+2%) supported by an upbeat assessment of the company’s prospects by Peel Hunt.
Analyst Andrew Nussey said he believes that Kier is well positioned to deliver long-term growth and a sustainable dividend.
“Recent momentum provides earnings visibility, a path to delivering the organic growth targets and cash generation” Nussey commented.
He pointed out the de-rating of the share price to 3.6x full year 2023 earnings per share forecasts (a c.45% decline over the past 12 months, despite unchanged estimates) is in sharp contrast to the attractive company and market fundamentals.
“Improved behaviours make this an investible sector in our view, with Kier’s quality of earnings and undervalued free cash flow potential standing out” Nussey concluded.
He has a buy rating and a 200p price target on the company.
M&S on the rise after positive sales data
Shares in Marks and Spencer (LON:MKS) rose 2% as data from Nielsen IQ showed that it was placed second in the list of food retailers based on sales momentum in the last 12 weeks.
Broker Shore Capital said “with its strong current offer Marks & Spencer recorded the second highest 12 weeks sales momentum from the NielsenIQ figures at 7.3%, maybe eating into Waitrose’s base, followed by the Coop at 6.0% which was ahead of Aldi at 5.0%.”
Lidl remained the fastest growing UK supermarket with a whacking 14.2% annual growth versus the 12 week period in 2021, Shore Capital said.
Waitrose was the laggard with sales down 4.3% year-on-year; suggesting that its relatively higher income customer base is not immune from the competitive and emerging economic environment.
Bango acquisition pleases investors
Bango PLC (AIM:BGO, OTCQX:BGOPF) pleased the market with the acquisition of global payments business, DOCOMO Digital for €4mln, from NTT DOCOMO in a deal that will be earnings enhancing in the first full year of ownership.
Shares stormed ahead by 10% as analysts reacted positively with broker Liberum raising its price target to 345p from 260p on the stock.
It said the deal accelerates Bango’s growth strategy, through an almost doubling of end user spend onto the Bango platform adding that importantly, with significantly more additional payment data being processed through the platform, this improves the insights through Bango Audiences.
“The acquisition is highly consistent with its strategy and enhances Bango’s virtuous circle.”
Liberum has reiterated its buy rating and increased its full year 2024 EBITDA forecast by more than 50%.