SONIA Illiquidity Could Explain Disconnect in BOE -2-

Warpaint London Has Further Growth Opportunities

1046 GMT - Warpaint London's 1H update bring limited news but confirms that the group is performing strongly as it is making further progress to expand its presence in larger retailers, Shore Capital analysts Darren Shirley and Clive Black say in a note. The cosmetics company expects to report 1H sales in excess of GBP36 million, with margins ahead of 2022 levels, they highlight. Another positive news was the upcoming launch of W7 brand in September, providing significant opportunities to grow sales, the analysts say. "We reiterate our view that Warpaint is in the foothills of its U.K. and international growth opportunity, with strong foundations and accelerating momentum," they add. ([e-mail])

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Tatton Asset Manager Looks Well Placed to Grow

1045 GMT - Tatton is well positioned for sector-leading growth, Peel Hunt says in a note initiating coverage of the asset manager's stock with a buy rating and 550 pence target price. The brokerage estimates its assets under management will have a 17% compound annual growth rate over the three years to March 2026, compared with the sector average of 9%. "We see continued scope for outperformance given sector-leading growth opportunities, margins, scalability and inherent operational leverage," analysts write, pointing to its simple and low-cost product that is increasingly attractive to financial advisers in the U.K. Shares, which have gained 26% over the last 12 months, trade flat at 465 pence. ([e-mail])

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B&M Likely to Post Solid 1Q Performance Despite Challenging Backdrop

1022 GMT - B&M is expected to post a solid 1Q performance update on Thursday despite challenging market conditions, Shore Capital analysts Eleonora Dani and Clive Black say in a note. The convenience retailer is likely to benefit from improved inventory management, affordable options and the recent hot weather, the analysts say. "We believe that B&M's product range is well-suited for the current market conditions," they say. However, a tougher comparison against last year, pressure on the U.K. consumers' disposable income and the need for price increases are likely to limit the performance, they say. ([e-mail])

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Revolution Beauty's Return to Trading Is Positive Despite Boohoo Spat

1019 GMT - Revolution Beauty's return from shares suspension is positive news, but it is far from the issue price of 160 pence when the group floated in 2021, AJ Bell investment director Russ Mould says in a note. The beauty company reappointed the executives who had been forced out by shareholder Boohoo as the competitor sought to appoint its own directors. The spat shows that taking stakes in peers was always a recipe for friction, he says. "For the sake of other shareholders, both parties could do with putting the war of words behind them and working together constructively, whatever concessions this might require on both sides," Mould adds. Shares surge 57% to 29.9 pence. ([e-mail])

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(END) Dow Jones Newswires

06-28-23 0828ET