Bank Solvency Fears Seem Overdone, But Some Might -2-

1155 GMT - Halma's fiscal 2023 performance update was characteristically solid, reflecting another good year of progress, Peel Hunt says. The safety, health and environmental-technology group's three sectors all delivered strong growth, with the second half roughly consistent with the first, and of the major regions, the U.S. and Europe have been strongest, with Asia the slowest due to a decline in China, Peel Hunt analysts Henry Carver and Harry Philips say in a research note. "We note acquisition spend at record levels, plus a robust order intake, underpinning the outlook," the brokerage says. Peel Hunt retains its hold rating and 2,100 pence price target on the stock. Shares are up 0.3% at 2,054 pence. ([e-mail])

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Halma Flags Solid Year, Strong Orders

1131 GMT - Halma shares edge 0.1% higher after the safety-equipment supplier forecast adjusted pretax profit in the year to the end of March in line with market expectations. The company reported strong constant-currency revenue gains from its existing business in the U.S. and mainland Europe, though revenue increased more modestly in its Asia-Pacific business, reflecting a decline in China, it said. "It was a characteristically solid update from Halma, reflecting another good year of progress," Peel Hunt analysts say in a note. "We note acquisition spend at record levels, plus a robust order intake, underpinning the outlook." ([e-mail])

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Restore Enters 2023 With Good Momentum

1130 GMT - Restore has started 2023 with good momentum after contract wins, cost reduction actions and pricing changes, Peel Hunt's Christopher Bamberry says in a research note. The London-listed office-services company's 2022 results were in line as pretax profit rose 8% and it said it expects the price/cost impact to be broadly neutral in 2023, Bamberry notes. The focus for the first half will be on organic execution, with further pricing actions to be introduced during the half, he says. Peel Hunt has a buy rating on the stock with a price target of 448 pence. Shares are up 1.0% at 314.00 pence. ([e-mail])

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Currys Remains Proactive in Challenging Nordic Market

1121 GMT - Currys have appointed a new CEO in the Nordics region to help accelerate plans of restoring profit and cash generation, Liberum analysts Adam Tomlinson and Wayne Brown say in a note. Against a tough consumer backdrop in the region, this shows the company is remaining proactive, the analysts say. The electrical retailer also set a new guidance for FY 2023 adjusted pretax profit, in line with consensus of GBP104 million, but toward the lower end of its previous guidance range--noting that recovery in the Nordics will be key to this, they say. "Management notes that further cost savings are planned, which we suspect could include moves to optimise the Nordics store estate," the analysts add. ([e-mail])

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St. James's Place to Benefit Most From UK Lifetime Pension Allowance Axe

1121 GMT - The abolishment of the lifetime pension allowance in the U.K. budget is likely to benefit St. James's Place more than Hargreaves Lansdown due to the wealth-management business's more affluent customer base, Citi says. Retention of retail-investment platform HL's high-value customers remains an issue and may dampen any earnings benefit, Citi says in a note after shares in both companies rallied 2% on Wednesday. "This is positive for U.K. wealth platforms, although the benefits are hard to quantify," analyst Andrew Lowe says, adding that all companies at the margin should benefit from sector-wide flows. The U.S. bank rates SJP neutral, HL sell and peer AJ Bell buy. ([e-mail])

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DFS Furniture Should Continue to Win Market Share

1103 GMT - DFS Furniture's recent market share-winning is expected to continue, as a tough first half of fiscal 2023 ended strongly, Peel Hunt analysts write in a research note. The U.K. furniture retailer has continued to win market share, averaging 38% in the first half-year, and the gains are expected to continue, Peel Hunt says. The period was tough for the industry as a whole, but 2Q saw improvement with 16% sales growth, Peel Hunt says. The company's order intake is still up by around 2H's levels, implying flat-to-slightly down volumes, which "is a country mile ahead of the competition for the period," the analysts say. Shares are down 1.95% at 130.4 pence. ([e-mail])

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Bridgepoint's Resilience Is Underappreciated

1046 GMT - Bridgepoint Group's strong 2022 results point to an underappreciated resilience in the private-equity firm's model, says Jefferies in a note, adding this is not reflected in the 41% share price decline since its IPO. Bridgepoint and peers, including Swedish group EQT, could be among the strongest performers in the European diversified financials sector as market conditions stabilize and clarity around terminal rates emerges, Jefferies says. The U.S. bank has a buy rating on the stock. Shares rise 2.3% at 210 pence. ([e-mail])

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Insurer Share Price Falls Are a Buying Opportunity

1045 GMT - The reduction in European insurers' share prices amid fallout from the SVB collapse provides a buying opportunity, RBC Capital Markets says in a note. A similar crisis couldn't occur in the insurance sector, which is by design based in risk sharing and having ample liquidity, the brokerage says, noting that most insurers know the duration of their liabilities, only invest in investment-grade credit and are underweight bank debt. "We highlight the U.K. annuity writers as attractive at current valuation levels, with all outperforming earnings expectations at FY 2022 results," analyst Gordon Aitken says, adding that they should benefit from the bulk annuity opportunity, a slowdown in future longevity improvements, and Solvency II reform. The insurance Stoxx 600 sub-index rises 1.4%, having lost 7.5% since the beginning of the week. ([e-mail])

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Gym Group's Next CEO May Have to Do Some Heavy Lifting

1042 GMT - Gym Group's next chief executive will have to flex their corporate muscles to help win the market over in the face of escalating costs, AJ Bell investment director Russ Mould says in a note. Nonproperty net debt jumped in 2022 to GBP76.1 million from GBP44.1 million to fund the remainder of a site roll-out program and to buy three sites, he says. With membership growth starting to slow and inflationary pressures, it is having to take a different approach as it is now pledging to only fund new sites from its own cash flow, Mould says. While such prudence is no bad thing, it means investors will have to face up to a slower pace of growth, he says. Shares trade down 21% at 93.00 pence. ([e-mail])

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03-16-23 0848ET