1249 GMT - Rolls-Royce's new CEO Tufan Erginbilgic is expected to drive major change as part of the company's transformation program, including a strategic review in order to steer the business in a more positive direction, Interactive Investor's head of investment Victoria Scholar says in a note. The British aerospace and defense company's shake-up could potentially reinvigorate the bull case if a much-needed drastic overhaul is successful, she says, and shares are enjoying double digit percentage gains Thursday, reflecting the optimism. Shares trade up 24% at 133.52 pence. (kyle.morris@dowjones.com)
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Howden Joinery's Fine 2022 Results Didn't Excite
1210 GMT - Howden Joinery's 2022 results confirm another fine year but weren't much different than expected, says Davy Research in a note as shares in the U.K. maker of kitchen and joinery products fall 1.5%. "The stock before today was up something like 27% year to date so there may be an element of profit taking especially as the results, while good, were not that materially different to what was anticipated," Davy says. "If there is a more specific factor that might be weighing on the share it could be the move in the pension last year--it swung from a surplus of GBP141 million to a deficit of GBP42 million--although it should be remembered this deficit is still very small at just around 1% of the Howdens market capitalisation." (elena.vardon@wsj.com)
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Next Looks a Mispriced Opportunity as UK Discretionary Sector Recovers
1148 GMT - Next appears to be a mispriced value opportunity in omnichannel retail as the U.K. consumer discretionary sector is starting to show green shoots, Bank of America Global Research analysts say in a note after upgrading the stock rating to buy from neutral. The London-listed fashion retailer has proven its ability to drive synergies across online and offline channels, successfully shifting from an offline and directory retailer to an omnichannel leader, they say. "(Next) still trades at a 40% valuation discount to omnichannel peers Inditex and H&M. We think this gap should close," they say. Next shares are up 2.2%. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
02-23-23 1238ET
