BOE Could Start Cutting the Bank Rate in 4Q 2023, -2-

1131 GMT - AO World's challenge is now to show share gains beyond its main category of major domestic appliances, or MDA, says Peel Hunt in a note. "With a stable and profitable U.K. base, the wider question becomes where AO's growth comes from, as efforts to drive non-MDA sales prove more challenging without the benefit of AO's superior service proposition," the brokerage says, pointing to its other categories such as small domestic appliances, audiovisual and consumer electronics. Peel Hunt keeps its hold rating on the stock, raising its target price to 80 pence from 70 pence. Shares are up 0.6% at 70.0 pence, having hit 81.9 pence earlier in the session. ([e-mail])

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Unite Group's Strong Q4 Update Proves Demand Remains Strong

1127 GMT - Unite Group's fourth-quarter update was positive, with academic year 2023-24 rent growth guidance raised, the current sales cycle tracking ahead of previous years, and like-for-like valuation declines in the second half of 2022 notably lower than expected, RBC Capital Market says. The U.K. student-accommodation company's update demonstrates the significant demand/supply imbalances in the U.K. student accommodation market, and the resultant upward rental pressure, RBC analysts say in a research note. "We believe such an imbalance will persist for longer, and we continue to view Unite as one of our top picks in the sector," the Canadian bank says. RBC retains its outperfom rating and 1,100 pence price target on Unite's stock. Shares are down 0.2% at 938.0 pence. ([e-mail])

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Card Factory's Material Upgrade Looks Impressive

1119 GMT - Card Factory's performance update was impressive given the robust upgrade on its figures, Liberum analysts Adam Tomlinson and Wayne Brown say in a note. The retailer of greeting cards and complementary products raised its FY 2023 Ebitda and pretax profit expectations by 10% and 28%, respectively, from previous guidance, boosted by a robust performance across its entire product range, the analysts say. This reflects merchandising improvements and the continued postpandemic recovery, the analysts say. "[Card] Factory is a top-pick for 2023 as continued trading momentum, very high cash conversion and falling debt levels are some of the characteristics that will drive share price outperformance," they say. Liberum has a buy rating on the stock. ([e-mail])

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01-10-23 0729ET