FTSE 100 Closes Down Dragged by Oil Stocks; -2-

1044 GMT - Synthomer showed signs of recovery after a tough start to the year, UBS writes in a note after the chemical supplier posted an update for the first four months of 2023 that reflected weak end markets, similar to the rest of the sector. The group's focus remains on cost cutting and recovery potential in the second half of the year, analysts write. They calculate that an around 74% sequential recovery in second-half Ebitda is needed to meet Visible Alpha's 2023 consensus of GBP208 million and this can be reached if most cost savings are achieved and even if volumes remain negative for most of the year. UBS rates the stock buy. Shares slip 1.3% at 110.6 pence.([e-mail])

---

Fewer Investors See Dollar as Overvalued, Euro And Pound as Undervalued in BofA Survey

1036 GMT - Fewer investors considered the dollar to be overvalued and the euro and pound to be undervalued in May, Bank of America's latest global fund manager survey shows. The proportion of investors saying the dollar is overvalued was 48% in May, 10 percentage points lower compared to last month. Some 22% of investors saw the euro as undervalued in May, down 14 percentage points compared to a month ago and the lowest since April 2022. The pound was seen as undervalued by 9% of investors in May, down 8 percentage points from April and the lowest since May 2022. ([e-mail])

---

Boohoo's Performance Seen as Robust Despite Tough Backdrop

1023 GMT - Boohoo's FY 2023 results and guidance reflect a robust performance in challenging conditions, Peel Hunt analysts say in a note as shares rise 10%. The online retailer reported a slightly better-than-expected FY 2023 Ebitda, while cost savings and margins tailwind are likely to support Ebitda growth for the year ahead, they say. However, the main surprise came in the balance sheet, where Boohoo reported a net cash at year end of GBP5.9 million, driven by a 36% stock reduction and supported by working capital measures, substantially ahead Peel Hunt's forecast of GBP55 million net debt, the analysts add. ([e-mail])

---

Edenred's Acquisition Looks Justified Despite Demanding Valutation

0959 GMT - Edenred's acquisition of Reward Gateway for GBP1.15 billion is justified by the U.K. employee-engagement platform company's strong growth and profitability, Stifel analysts Simon Lechipre and Tatiana Velandia write in a research note. While a seemingly high multiple of 20 times the evaluation-value-to-Ebitda looks demanding, Reward Gateway's high-growth profile, strong profitability and cash-generative profile warrants the acquisition, the analysts say. "It should add around 6% revenue at the group level with an accretive impact on group profitability," they say, estimating a low-to-mid single-digit accretive impact on 2024 group profit before synergies for the French digital payments company. Stifel has a buy rating on the stock. Shares are up 1.1% at EUR59.72. ([e-mail])

---

FDM Forecasts Trimmed but Business Still Looks Strong

0957 GMT - FDM annual meeting update details both a solid first quarter and deterioration of business into the second quarter, prompting Shore Capital to make modest reductions to revenue estimates for 2023 and 2024, and lower 2024 profit forecasts by 6%, analysts say. The IT consultants group's previous caution explains the modesty of the reductions, as does its ability to fine-tune spending and recruitment to hopefully reach profit targets despite the likely revenue misses, Shore analysts say in a research note. "Market share is not being lost, and we hope that projects currently being slowed will catch up in due course," the investment group says. Shore has FDM as a house stock. Shares are down 3.8% at 627.0 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

05-16-23 1218ET