Rolls-Royce CEO Seems to Have Got Investors -3-

1126 GMT - Genus's strong first half, with an unexpected boost from resolving a patent dispute puts the animal genetics company in a position in which it no longer needs to see China volumes recover to meet forecasts, Liberum says in a note. "As ever with Genus there are a lot of moving parts, but a combination of Genus' geographic diversification and continued shift towards royalties has helped iron out the ups and downs," analysts Seb Jantet and Edward Thomason say. Liberum rates the stock buy. Shares jump 9.9% to 2,972 pence, recovering earlier losses since the start of the year with the stock now down 0.4% in the year to date. ([e-mail])

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Rolls-Royce CEO Seems to Have Got Investors Excited as Shares Jump

1057 GMT - Rolls-Royce's new CEO Tufan Erginbilgic clearly seems to have got investors excited by targeting seven areas of improvement, AJ Bell investment director Russ Mould says in a note. "Erginbilgic has taken advantage of the leeway offered with a new broom and swept away the annual dividend despite profit proving more resilient than feared in 2022," Mould says. The CEO has brought in former colleague Nicola Grady-Smith as chief transformation officer to effectively co-pilot the turnaround program, he says, adding that plans for a strategic review suggest there could be further disposals. Shares trade up 22% at 131.44 pence. ([e-mail])

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Howden Joinery's Good 2022 Finish, Good 2023 Start to Move Consensus Up

1054 GMT - Howden Joinery is still capable of delivering growth and market-share gains are expected over the next few years, Peel Hunt says in a note as it sees consensus for 2023 pretax profit increasing on the back of the U.K. maker of kitchen and joinery products' 2022 beat. "Management flagged a further price rise at the start of this year, combined with a belief that it will continue to take market share, helped by new branches as well as ongoing investment in depots and ranges," analysts Clyde Lewis and Sam Cullen say. Peel Hunt rates the stock buy. Shares slip 1.0% lower at 710.0 pence. ([e-mail])

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BAE Systems Revenue, Orders Rise, But Profit Stays Flat

1045 GMT - BAE Systems shares drop 3% after the arms group reported higher annual revenue and orders, though operating profit was broadly unchanged. BAE has benefited from escalating global geopolitical tensions and higher government defense spending in the wake of Russia's invasion of Ukraine, analysts say. Still, inflationary pressures have acted as a brake on profit, which is flat year-on-year, Adam Vettese at financial-services firm eToro writes. And while BAE looks in good shape to achieve long-term growth targets, uncertainty around future costs will remain a risk, Hargreaves Lansdown analyst Aarin Chiekrie writes. ([e-mail])

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Amigo's Equity Raise Update Is Positive But Step-Up Needed

1039 GMT - Amigo Holdings quantified the level of interest received in its prospective equity raise for the first time, says Goodbody in a note. "It is positive that progress towards the GBP45 million target has been made, but market conditions are clearly challenging and AMGO will need a significant step-up in interest prior to the 26th of May deadline," says analyst Ronan Dunphy. The U.K. guarantor-loan provider flagged it received nonbinding, indicative interest for between GBP10 million and GBP15 million of equity and GBP10 million of exchangeable notes. Shares are flat at 2.5 pence, having lost 44.4% year-to-date. ([e-mail])

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Mondi's Cautious Outlook Weighs on Solid Results

1027 GMT - Mondi's outlook looks cautious, with management highlighting the backdrop remains uncertain, says Goodbody in a note after the paper and packaging group published results ahead of consensus and driven by second-half forestry fair value gains. "Overall, a solid update from Mondi albeit there were clear signs of slowing in 2H," says analyst David O'Brien. The group said it continues to see an environment of softer demand and pricing though some costs are starting to decrease, he says. Goodbody rates the stock hold with a 1,478 pence price target. Shares fall 6.9% at 1,376.0 pence. ([e-mail])

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BAE Systems to Benefit in 2023 From Geopolitical Tensions

1027 GMT - BAE Systems has profited handsomely from the war in Ukraine with an uptick in global defense spending, record orders for the defense-and-aerospace company of GBP37.1 billion and a very healthy backlog of almost GBP59 billion, eToro analyst Adam Vettese says in a note. Despite supply-chain problems, the company achieved 8.9% revenue growth but inflationary pressures acted as a brake on profit, which was flat year-on-year, Vettese says. Although inflation is still a problem, supply chains are unclogging and the tensions building between the major power blocs show little signs of dissipating in the next 12 months, he says. "That should leave governments more inclined to increase defense spending," Vettese says. ([e-mail])

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Anglo American Drops After FY Revenue, Profit Fall

1004 GMT - Anglo American shares drop 2% and other miners fall after Anglo reported lower annual revenue and profit. While the company is the latest in the sector to take a hefty top and bottom-line hit, key commodity prices reached record highs in 2021 and prices are still high enough for miners like Anglo to generate good cash, Hargreaves Lansdown says. "Looking to the future, it's pleasing to hear positive news from the group's latest copper project, the Quellaveco mine in Peru," HL analyst Matt Britzman writes. "First production began last year and it's ramping up, expected to reach full capacity over the course of this year." ([e-mail])

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BAE Systems' Long-Term Commentary Was Upbeat, But 2023 Guidance Weak

0959 GMT - BAE Systems PLC results were broadly in line, but the defence company gave "very bullish" long-term commentary, UBS says. Still, the company's share price is 3.7% lower in early trading. UBS says that 2023 guidance is fractionally weak so 2023 consensus estimates are unlikely to change materially. ([e-mail])

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Mondi Had Solid FY, But Signs of Slowdown Weigh

0944 GMT - Mondi is the biggest FTSE 100 faller, down 7% after the paper and packaging group reported in full-year results what Goodbody described as a cautious outlook. While the numbers were solid overall, there were clear signs of a market slowdown in the second half, the brokerage says. "Management highlights that the backdrop remains uncertain," Goodbody analyst David A. O'Brien says in a note. "While some costs are starting to decline, Mondi continues to see an environment of softer demand and pricing, with de-stocking expected to continue into 1Q23." ([e-mail])

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WPP Gains as Cost Progress, Buybacks Cheer Investors

0941 GMT - WPP shares are among the biggest FTSE 100 risers, up 5% after the advertising, marketing and public-relations firm announced higher annual revenue and profit. News that the company is on track to hit cost targets came as a relief to investors, while share buybacks also helped sentiment, Hargreaves Lansdown says. "As a media giant, WPP has been stung by a global slowdown in marketing spending brought on by enormous geopolitical and economic stress," HL analyst Sophie Lund-Yates writes. "By all accounts this looks to be reversing, which has fed into strong growth at the end of the year. To top it off, momentum hasn't only been achieved, it's being harnessed, and revenue growth of 3 -5% is expected this year." ([e-mail])

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BAE Systems' 2022 Results Were Strong But Guidance Is Below Consensus

0923 GMT - Although BAE Systems delivered a good set of results its outlook was below consensus, Berenberg analysts say in a note. The defense-and-aerospace company's 2023 EPS guidance of 5% to 7% is a bit light when compared with consensus of 9%, as does free cashflow guidance of GBP1.2 billion, below consensus of GBP1.7 billion, the analysts say. Its 2023 revenue growth guidance of 3% to 5% faces consensus of 5% with strongest growth in Electronic Systems, the analysts say. Berenberg rates the stock buy and has a 900 pence target price. Shares are down 2.5% at 879.40 pence. ([e-mail])

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Rolls-Royce's Cash Flow Is the Stand out of 2022 Results

0903 GMT - Rolls-Royce's 2022 results were well ahead of consensus, particularly on all-important cash flow, Citi analysts say in a research note. The British aerospace-and-defense company's 2023 guidance is also ahead, again particularly in cash flow. Citi has a buy/high risk rating on the stock with a target price of 147 pence. Share trade up 18% at 127.40 pence. ([e-mail])

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(END) Dow Jones Newswires

02-23-23 0707ET