1046 GMT - GSK's full-year results were solid and better than expected, though the shares need more drivers and rivals look more attractive, fund manager Quilter Cheviot says. GSK has now done well for a few quarters in a row, helped by good performances from shingles vaccine Shingrix and older products such as respiratory product Advair, Quilter says. Still, 2023 is a relatively light year in terms of catalysts for the company and GSK needs to improve its line-up of new drugs, Quilter says. "All in all, solid results to finish 2022, but headwinds remain and there are better-quality healthcare stocks available to investors," Quilter analyst Sheena Berry writes. (philip.waller@wsj.com)

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Renew Holdings 1Q Supported by Order Growth

1059 GMT - Renew Holdings 1Q update confirmed performance was in line, supported by further order-book growth, Peel Hunt analyst Andrew Nussey says in a note. The engineering-services company's outlook remains positive given its structural growth drivers,specialist capabilities, order-book visibility and its proven ability to manage inflationary and skills pressures, Nussey says. Renew Holdings also enjoyed further material awards in January, according to media reports, which reflects strategic and operational progress, Nussey says. Meanwhile, the company's free cash flow is becoming increasingly positive, and its strong position in relation to peers suggests scope for material outperformance, he says. Peel Hunt rates the stock buy with a 900 pence target price. (anthony.orunagoriainoff@dowjones.com)

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Virgin Money's Unchanged Net Interest Income Guidance Is Conservative, Says Citi

1124 GMT - Virgin Money UK's unchanged net interest income guidance reflects management conservatism, says Citi. "The commentary [seems] to suggest that the positives (structural hedge, liability margins) and negatives (mortgage spreads, higher liquid balances) are evenly balanced," say analysts at the brokerage. They see the financial-services group's solid 1Q update leading to high-single-digit increases to consensus on the back of higher net interest margin and balance growth. Citi rates the stock buy but prefers peers Lloyds and Natwest, which have better NII, earnings momentum and offer higher returns. Shares edge down 0.1% at 192.8 pence. (elena.vardon@wsj.com)

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Virgin Money Could Become a Bid Target If Shares Don't Rise, Says Shore Capital

1137 GMT - Virgin Money UK could become an acquisition target if shares fail to climb further toward Shore Capital's price target, the U.K. investment group says, adding the stock remains materially undervalued despite having rallied from their lows over recent months. The financial-services company first-quarter lending momentum was better than expected, but Shore sees it moderating over the rest of the year. "The balance sheet is largely secured and well capitalized, which provides protection to the downside, while a failure to re-rate could potentially see the group become a bid target for private equity," says analyst Gary Greenwood in a note. Shore rates the stock buy with a price target of 320 pence. Shares edge up 0.1% at 193.1 pence. (elena.vardon@wsj.com)

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US and UK Corporate Bonds Outperform European Counterparts in January

1145 GMT - Dollar-denominated and sterling-denominated corporate bonds have outperformed their euro counterparts in January 2023 after an overall awful performance in credit markets in 2022, Deutsche Bank Research macro strategist Henry Allen and head of global economics and thematic research Jim Reid say in a note. Various assets have put in a very strong performance in January as the macro-economic outlook has improved due to falling energy prices and reopening of China's economy. "All the credit indices we follow were in positive territory over January," the analysts say. (miriam.mukuru@wsj.com)

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Vodafone Held Back by Weak German Market

1147 GMT - Vodafone Group shares are among the biggest FTSE 100 fallers, down 2% after the telecom company reported a third-quarter slowdown in service revenue versus the second quarter, weighed by its Europe business. The group said it was maintaining its full-year targets, but that the European revenue decline showed it could do better. A weak German market is holding Vodafone back despite an otherwise improving story, Hargreaves Lansdown says. "The market was underwhelmed, with the shares slipping 1% at the open," HL head of equity funds Steve Clayton writes. (philip.waller@wsj.com)

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ITV's Studios Business Has Hidden Value, But Any Deal Could Be Tricky

1150 GMT - ITV's studios business has significant hidden value, but the challenge is unlocking it, Citi's Thomas Singlehurst and Ella Walker-Hunt say in a research note. Reuters has reported that there have been multiple expressions of interest in ITV Studios but no formal approach has been confirmed, say the analysts. A complete or majority sale is unlikely, a small stake sale would be the easiest way to signal value, but it isn't clear that potential acquirers would be willing for such a deal, they add. Citi has a buy rating for the stock with a 100 pence target price. (kyle.morris@dowjones.com)


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(END) Dow Jones Newswires

02-01-23 1216ET