Proactive Investors -
- FTSE 100 up 8 points at 8,290
- Shein files for listing
- Saga back full-year guidance
AstraZeneca's Imfinzi still has options, broker believes
AstraZeneca (NASDAQ:AZN) shares have held flat this morning despite its lung cancer immunotherapy Imfinzi having failed to hit its primary endpoint of disease-free survival compared to the placebo.
"Whilst this result is disappointing, we highlight there still remains a raft of separate studies ongoing that are also looking move Imfinzi into earlier treatment lines of lung cancer," said Sean Conroy at Shore Capital.
"Imfinzi has increasingly become an important driver of growth over recent quarters, supported by launches into new indications.
"With c.85% the FY27F consensus forecasts for Imfinzi already attributable to its use for lung cancer, we continue to view the opportunities outside of lung cancer as more important sources of near- to medium-term upgrades."
Shore Capital has maintained its buy recommendation for the pharma giant and is hopeful it can upgrade forecasts when Astra posts its second-quarter results at the end of July.
Morning so far
London stocks have failed to make any movements this morning as the lack of company or macroeconomic updates added to the ongoing election campaign leaves the markets in a state of purgatory.
Saga shares edged higher after it reported further strong trading for its ocean cruise business despite warning that the insurance market remains “challenging”.
Overall, the provider of services to the over-50s said, trading was in line with expectations, with ocean and river cruises both having seen load factors increase by 83% and 78% respectively compared to last year.
Shein is closing in on its eagerly-awaited London IPO after reports revealed it filed papers with UK market regulators earlier this month.
A listing is expected to take place later this year.
Meanwhile, AstraZeneca shares have shrugged off disappointing news on an advanced lung cancer trial of its Imfinzi immunotherapy.
Phase III trials showed the drug did not achieve statistical significance for its primary endpoint of disease-free survival compared to placebo in early-stage non-small cell lung cancer.
FTSE flat at the open
The FTSE 100 has opened 11 points higher at 8,293, continuing the upward momentum from yesterday, but failing to launch a significant rally due to the lack of company updates.
However, while business updates have been quiet, car dealership network Vertu Motors (AIM:LON:VTU) has provided some insight into the new and used car market.
New vehicle volumes increased by 6.8%, but margins fell, highlighting the use of discounting, with the soft pricing providing another indication inflation is easing.
"Used vehicle volumes also grew strongly, with prices remaining stable. The Group also noted that regulatory support for electric vehicles may lead to the strengthening of petrol and diesel used car values as supply dwindles," Derren Nathan at Hargreaves Lansdown (LON:HRGV) said.
Vertu Motors (AIM:VTU) expects full-year results to be in line with guidance.
Shein filed for its London listing earlier this month, reports say
Shein, the fast-fashion giant, is said to have filed papers with UK market regulators earlier this month for its London listing later this year, reports from Reuters revealed.
Both spokespersons for Shein and the Financial Conduct Authority (FCA), the market watchdog, declined to comment.
The Chinese company struggled to list in the US after facing tough pushback from lawmakers.
Yesterday, bosses at Shein met with shadow business secretary Jonathan Reynolds to discuss details of the listing.
The Labour Co-op MP said that if Britain wants to allow new companies into the country then “we should seek to regulate them in the UK”.
He claimed that regulating them here would allow the highest standards to be enforced, pointing out that London-listed businesses have a "pretty extensive set of compliance standards applied to them”.
Saga backs guidance as its cruises boom
Saga, the specialists for people over 50, reiterated its full-year guidance and said its travel and cruise divisions have started the year strong in the first four months, offsetting challenging market conditions in its insurance arm.
Ocean and river cruises saw their load factors rise by 83% and 78% year-on-year respectively, while travel booking revenue rose 14%.
In the insurance division, Saga has had to take action in the broking arm, but this is producing the expected benefits, particularly in motor insurance.
On the plus side, the combined operating ratio has been improved by price rises in insurance underwriting.
"Looking ahead, we are focused on driving sustainable business growth in a capital-light way, while growing our customer base and deepening our connections with those customers," said Mike Hazell, group CEO.