Gilt Yields Rise After Above-Forecast UK Services -2-

0904 GMT - For Fulham Shore Executive Chairman David Page, Japanese group Toridoll's GBP93.4 million takeover bid represents another notch in his career of building up a series of restaurants then selling them, AJ Bell analyst Danni Hewson says in a note. A good restaurateur spots a gap in the market, rolls out a proposition keeping a close eye on costs and good deals on leases then waits for it to build scale before selling the chain, Hewson says. "One might argue that the 14.15 pence takeout price... doesn't fully price in its potential... But in an economically uncertain environment, the price on the table might seem reasonable given the circumstances and possibly the best deal that could emerge for some time," Hewson says. ([e-mail])

---

RS Group's Ebita Guidance Raise Likely to Lift FY 2023 EPS Estimates

0859 GMT - Estimates for RS Group's fiscal 2023 EPS are likely to increase by low-single digits after the industrial and electronics products distributor raised its Ebita guidance on price inflation and cost control, Jefferies analysts Kean Marden and Allen Wells say in a note. The company highlighted a strong pipeline of potential acquisition opportunities, with analysts calculating a potential of around GBP500 million to GBP1 billion over the next two years, and its intention to broaden product ranges as well as improve digital and expand solutions. Jefferies rates the stock buy and has a 1,200 pence target price. Shares are down 3.8% at 861 pence. ([e-mail])

---

Direct Line Insurance Shares Look More Attractive

0857 GMT - Direct Line Insurance Group shares rise 4% to 150 pence after Citigroup double-upgrades the insurer to buy from sell. A share-price fall of about 40% so far this year and a reduction of about 32% in 2023 earnings-per-share consensus expectations means risk-reward looks better, Citi says. "We believe there is sufficient solvency self-help to avoid an equity raise, that the motor pricing cycle has bottomed out and that DLG's current circa-5.3x 2024E [price-earnings ratio] represents an attractive entry point," Citi analysts say in a note, also increasing their price target on the stock to 188p from 136p. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

04-05-23 0656ET