Ocado Consensus Estimates Might Drop After Update -3-

Revolution Bars Recovery Potential Is Significant, Peel Hunt Says

1157 GMT - Revolution Bars Group's potential scale of recovery is large despite weaker conditions, Peel Hunt says in a note after the bar operator cut its full-year guidance as its Christmas trading was hit by rail strikes. The group's Peach Pubs, acquired in October, outshone the group in the five weeks to Dec. 31, with a 10% like-for-like rise in sales vs 2019, compared with a 9% overall drop, analysts Douglas Jack and Ivor Jones note. "Until the macro outlook improves, we believe the company is right to preserve cash," they say. Peel Hunt has a buy rating on the stock with a 20 pence target price. ([e-mail])

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Gold Prices Could Move to $2,200/toz in 2023, Morgan Stanley Says

1206 GMT - Gold prices have had a strong start to the year and could be set for further climbs, according to analysts at Morgan Stanley. In a note, Amy Sergeant says that the bank is optimistic about gold pricing, with "risks skewing to the bull case". It expects gold prices to sit between $1,990-$2,200 a troy ounce this year as dollar weakness and waning U.S. treasury appeal pushes more investors to gold. Macroeconomic forces such as recession are also acting as tailwinds, Sergeant says. She notes that "ETF holdings have seen no recovery so far, at the lowest level since early 2020" but that firm buying from central banks would provide further strength. Gold futures are 0.5% lower today at $1,911 an ounce. ([e-mail])

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Wise Payment Volume Slowdown Questions Growth Momentum, Jefferies Says

1218 GMT - Wise's total payment volume slowdown casts doubt on the fintech company's momentum, Jefferies analyst Hannes Leitner says. Wise hiked its fiscal 2023 growth guidance on higher interest-boosted income in the third quarter but its TPV missed consensus. "I believe the market anticipates strong interest income and the upgrade already but the softer-than-expected momentum in TPV--the core business--questions postpandemic growth momentum," Leitner tells Dow Jones Newswires. TPV growth slowed after three quarters of acceleration despite an undemanding comparative, the analyst says in a note. Shares fall 5.8% at 604.0 pence. ([e-mail])

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Naked Wines Could Struggle To Recruit New Customers

1246 GMT - Naked Wines' FY 2023 upgrade was positive given the stronger margin outturn from repeat costumers and better-than-expected cost cuts, Liberum analysts say in a note. However, the London-listed online wine retailer might face challenges ahead as cost-of-living pressures could make it difficult to recruit new customers in FY 2024, they add. On a positive side, Naked Wines is expected to be cash generative from FY 2024, while free-cash-flow is being boosted by de-stocking, they say. "We estimate an annual around GBP10 million of free-cash-flow can be generated on a sustainable basis," the analysts add. Liberum has a hold rating on the stock and price target of 130.0 pence. ([e-mail])

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Investors' Cash Holdings Fall in January But Remain High, BofA Survey Says

1329 GMT - Investors' cash levels fell to 5.3% in January from 5.9% in December as concerns about interest rates and recession risks eased, Bank of America's monthly global fund manager survey finds. This is the biggest drop since June 2020, although cash levels remain high and well above the average 4.7% level since 1999, BofA says in an accompanying press release. "Investors are still running high cash levels...but the combination of peak rates plus peak recession fears is causing cash allocation to fall," it says. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-17-23 0852ET