Sterling Could Fall Even if BOE Lifts Rates, Says -2-

0934 GMT - An approval for the Equinox 2 consultation on BT Group PLC's Openreach pricing offer for full-fiber broadband remains Jefferies' base case scenario, despite the anticipated two-month delay to the verdict. "Today's decision to prolong its review by two months creates some doubt. We suspect that Ofcom is keen to demonstrate rigor, lowering risk of legal challenge," analysts Jerry Dellis and Yi Hsin Yeoh say in a research note. If any relevant new evidence has been brought to light it should be revealed next week, the analysts say, adding that it seems reasonable to infer such, causing the regulator to question its approach. Jefferies has a buy rating on the stock with a 190 pence target price. ([e-mail])

---

Bodycote's FY22 Results Should Prompt Upgrades

0922 GMT - Bodycote's 2022 results make for a good reading, and the expected consensus upgrades should be well-received by the market, Jefferies analysts write in a research note. Despite a challenging backdrop, the London-listed metal heat-treatment company outperformed its underlying markets, as it managed cost and energy inflation very well, and delivered Ebita, adjusted pretax profit and EPS 5% to 6% above consensus, the analysts say. Following the strong results, Jefferies expects consensus upgrades to FY23 Ebita, currently GBP113 million, by a mid-to-high single digit percentage, which should be received well by the market. "The outlook commentary has a positive tone, and there is a healthy balance sheet to play with," Jefferies adds. The U.S. bank keeps a buy rating on Bodycote. Shares are up 6.45%. ([e-mail])

---

Kingfisher's FY 2023 Sales, Profit Poised to Fall

0915 GMT - Kingfisher FY 2023 earnings' focus will be in sales, geographic trends and adjusted profit, AJ Bell's investment director Russ Mould and head of financial analysis Danni Hewson say in a note. Analysts are expecting the home-improvement retailer to report a sales fall of 2.1% on a like-for-like basis and a further drop of 2.8% in FY 2024, they say. Within geographic trends, UK & Ireland LFL sales are forecast to fall 7.5% in FY 2023, a 1.6% drop in France while Poland would increase 16.1%. Kingfisher expects adjusted pretax profit to come in the range of GBP730 million to GBP760 million from last year's GBP949 million, while analysts are looking for GBP739 million, they add. ([e-mail])

---

Gym Group to Focus on Yield, Retention Amid Membership Challenges

0901 GMT - Gym Group's focus will be on yield and retention as membership recovery is taking longer than anticipated with less committed gym goers proving hard to re-engage, Liberum's Anna Barnfather and Nishant Dahad say in a research note. The cost-of-living crisis has added to the challenge with the no-contract model particularly exposed during this recovery phase, they add. However, they point out that significant investment has been made in IT and a pricing change is still to be trialed, which could see returns move back to historic levels as the macro backdrop improves. Liberum has a buy rating on the stock but lowers its target price to 180.00 pence from 200.00 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-17-23 0718ET