FTSE 100 Closed Up Helped by Strong UK Retail -2-

1130 GMT - Beazley is one of the most attractive profitable growth stories in insurance, says Berenberg in a note. The specialty insurer's stock has gone up around 75% since July 2021 when the brokerage rated it buy, and "there is plenty more to go given the very undemanding valuation," analyst Tryfonas Spyrou says. The recent capital raise makes it even more attractive, with the brokerage now estimating a growth rate of 28.5% in 2023 from 15% before. Combined ratio guidance for 2023 will be a key catalyst, it says, but notes that this will likely be conservative due to inflation, uncertainty about Russian aviation losses and heightened risk around cyber claims. Berenberg raises its target price to 875 pence, confirming the stock as one of its top picks for 2023. ([e-mail])

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M Winkworth's Healthy Dividend Record Is Attractive for Investors

1127 GMT - M Winkworth has reported a buoyant year for sales and lettings activities, says Shore Capital, raising its 2022 pretax-profit estimate for the company by 6% to GBP2.5 million. The London-focused estate agent is a cash-rich group with a well-established record of healthy dividends, the key valuation metric for the company, paying out quarterly and making supplementary returns in four of the last seven years, Shore analyst Alastair Stewart says in a research note. "We believe the 2023 dividend and free cash flow yields of 7.5% and 12.5% respectively make the stock attractive particularly to income investors," the investment group says. Shore has Winkworth as a house stock. Shares are up 1.6% at 160.0 pence. ([e-mail])

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Barratt Developments Faces Tough Conditions But Sector Remains Strong

1116 GMT - Barratt Developments' first-half statement unsurprisingly points to sharply lower activity amid tough market conditions, but fears for the company and the wider housing market look overdone, Peel Hunt says. The house builder and its peers continue to be dominated by downside concerns due to higher mortgage costs and the squeeze on household budgets, Peel Hunt analysts Clyde Lewis and Sam Cullen say in a research note. "However, the lack of housing stock remains while the sector is in a much stronger position financially with no excess stock to fire sale," Peel Hunt says. The brokerage retains its buy rating and 490 pence price target. ([e-mail])

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Barratt Developments' Short-Term Performance to Be Crucial for Expectations

1104 GMT - Barratt Developments' first-half statement showed a softer-than-expected sales rates outturn at year-end, Goodbody says. It will be imperative to see how the house builder sales rates evolve over the coming months to get a better sense of earnings for fiscal 2023 and indeed into fiscal 2024, Goodbody analyst Shane Carberry says in a research note. "Whilst we expect an improvement in sales rates over the spring selling season, current market expectations for volumes look a little bullish in our view," the Irish brokerage says, adding it expects to lower its volume expectations for fiscal 2023 toward 17,000. Goodbody retains its buy recommendation on the stock. Shares are down 2.9% at 284.0 pence. ([e-mail])

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Barratt Developments' Gloomy 1H Reflects Collapsing Confidence

1104 GMT - Barratt Developments' very gloomy first-half statement is surprising only in that it's taken this long for collapsing confidence in the housing market to show up fully in its numbers, AJ Bell says in a market comment. The house builder's big drop in its order book reduces visibility, but shouldn't come as a shock--when people are being warned house prices will fall by double-digit percentages, of course they're going to put off purchases, AJ Bell investment director Russ Mould says. "Barratt just needs to wait and see how bad things get," the brokerage says. "The company at least has a strong balance sheet to provide a buffer against weak trading and reward investors for their patience with dividends." Shares are down 2.9% at 284.0 pence. ([e-mail])

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(END) Dow Jones Newswires

01-11-23 1300ET