FTSE 100 Closes Up 0.2% on Quieter News Day -2-

1117 GMT - MPAC Group's trading update was line with expectations while further progress is expected given the improvement of supply chain challenges, Shore Capital analysts Robin Speakman and Akhil Patel say in a note. The U.K. packaging company's focus in supply chain management and cost saving initiatives have resulted in improved 2H margins and profitability, significantly improving performance compared with 1H, they say. The company is also making progress driven by a continued demand from blue-chip clients and subscriptions from its Mpac's Cube business, they note. "This, with an increasing prospect pipeline leaves Mpac well position for a strong recovery in FY 2023 and beyond," they add. ([e-mail])

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Just Eat Takeaway.com's Partnership With Sainsbury's Adds to Other Deals in Key Area

1126 GMT - Just Eat Takeaway.com's partnership with Sainsbury's for grocery deliveries in the U.K. adds to a number of similar deals the Amsterdam-based food-delivery group already has in a space that has often been described as a key growth frontier for takeaway delivery apps, interactive investor's head of investment Victoria Scholar says in a note. However, grocery delivery is an intensely competitive area, particularly with the arrival of the likes of Getir and Gopuff, she says. The deal is set to see the launch in more than 175 Sainsbury's stores by the end of February, with the plan to roll out stores across many more cities later in the year. ([e-mail])

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Amigo Unlikely to Raise Enough Capital, Goodbody Says

1131 GMT - Amigo's failure to secure a cornerstone equity investor for its capital raise increases the possibility that the guarantor-loan provider won't be able to raise enough funds before the deadline, Goodbody analyst Ronan Dunphy says. The greater likelihood that the "fallback solution" is triggered is pushing shares down, the analyst says, pointing to the orderly winddown of the business--which would wipe out existing shareholders and represent an inferior outcome for claimants--if the company misses the May 26 deadline. While it is positive that Amigo is working on putting together a group of smaller investors who have expressed interest, "there is clearly significant progress still to be made in securing the necessary equity," Dunphy adds. Shares fall 15% to 3.30 pence, having hit 2.17 pence earlier in the session. ([e-mail])

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Ashmore Should Benefit From Weaker Dollar, Stable Debt Flows in Emerging Markets

1238 GMT - The recent weakening of the U.S. dollar and the stabilization in emerging markets debt macro flows could bode well for Ashmore in 2023, Jefferies analysts say in a research note. However, because of material earnings downgrades there is the prospect of an uncovered dividend and the risk that a recovery in flows could take some time to come through, Jefferies says. Still, the asset manager specialized in emerging markets holds capabilities that could be of interest to a diversified large global asset manager, Jefferies says. The U.S. bank rates the stock hold and raises its target price to 270 pence from 225 pence. ([e-mail])

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Knights Group's 1H Seen as Concerning Given Growth Stagnation

1239 GMT - Knights Group Holdings released somewhat concerning 1H results Monday as it showed that organic growth has stagnated, Shore Capital analyst Jamie Murray says in a note. "Management is optimistic about 2H...but organic growth is likely to be muted until FY 2024," Murray says. On the positive side, the legal and professional services company has stated that it will focus on improving both organic growth and profitability, while the small acquisition of Meade King could provide some upside, he says. Shore has a hold rating on the stock. ([e-mail])

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Pearson Set for Continued Revenue Growth

1244 GMT - Pearson's trading statement on Wednesday should show a continuation of strong revenue growth, Credit Suisse's Matthew Walker and Avishay Mehra say in a research note. The Swiss bank estimates full-year organic growth of 6.4% versus consensus of 4.7% and compared with 7% at nine months. Given the policy of prudent budgeting/guidance, it is also highly likely for adjusted operating profit to exceed consensus of GBP443 million, they say. The long-term potential of shares depends on successful execution, the analysts say. Credit Suisse maintains its neutral rating on the stock, but cuts its target price to 1,000 pence from 1,045 pence. ([e-mail])

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Europe Markets Rise as Property, Building Stocks Gain

1304 GMT - Europe's major stock markets rise as gains for property and construction shares outpace losses for food-delivery firms and financial stocks. The Stoxx Europe 600, CAC 40 and DAX advance about 0.2% and the FTSE 100 rises 0.1%. Brent crude drops 0.4% to $84.96 a barrel. Wall Street is closed for the Martin Luther King Day U.S. public holiday. LEG Immobilien, Inmobiliaria Colonial, Segro and Taylor Wimpey are among the biggest pan-European risers, while HelloFresh, Just Eat Takeaway.com, Admiral and DNB Bank are among the biggest fallers in food-delivery, banking and insurance. "Asian stocks held steady as the new week began, but a U.S. holiday means overall market activity will remain circumscribed," IG analysts write. ([e-mail])

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ASOS's New Strategy Looks Similar, Lacks Transformational Qualities

1318 GMT - ASOS's 'Driving Change' plan looks similar to its previous strategy and doesn't have transformational qualities, Shore Capital analysts Eleonora Dani and Clive Black say. The online fashion retailer's GBP300 million cost saving agenda is also concerning, despite it being needed, as it could compromise the group's growth prospects and hurt the brand equity, they say. ASOS's sales are expected to decline in the U.K. and the rest of the world, but the extent of it will depend on marketing investment plans in 2H, they say. "We continue to see significant risks for equity investors and prefer peer Boohoo," the analysts say. Shore has a sell rating on the stock. ([e-mail])

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IQE Shares Dive, With Cautious Outlook Seen as Wider Market Proxy

1319 GMT - IQE shareholders are clearly disappointed by the silicon wafer-maker's cautious outlook for 2023 as the shares are taking a hammering, AJ Bell investment director Russ Mould says in a note. What's more, the announcement could have wider implications for the global economy and financial markets, even if the company's market capitalization only around GBP400 million, he says. "This is because IQE cites an inventory bulge at customers across the $600 billion-plus global semiconductor industry, which is a fair proxy for worldwide economic activity and, if past performance is any guide, a useful measure for stock markets' risk appetite," he says. Shares trade down 19% at 48.80 pence. ([e-mail])

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Totally May See New Business Stemming From UK Health Service Contract

1342 GMT - Totally PLC winning a new GBP10 million contract with the U.K.'s National Health Service is strong evidence the company is well-placed to support the NHS as it aims to meet rising demand for primary care and reduce patient waiting times, Canaccord Genuity analyst James Wood says in a note. The healthcare provider's long-term relationships with NHS commissioners and its proven experience in providing resilient, responsive and high-quality regional services when under increasing pressure has proven to be a decisive factor, Wood says. "We believe further new business opportunities are likely to emerge for Totally across both primary and secondary care," Wood says. Canaccord rates the stock buy with a 70-pence target price. Shares are up 1.4% at 35.75 pence. ([e-mail])

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(END) Dow Jones Newswires

01-16-23 1251ET