British Land Shares Lack Drivers as City Valuations Dip

British Land Shares Lack Drivers as City Valuations Dip

1112 GMT - British Land shares might struggle given pressure on City of London office valuations, JPMorgan says, downgrading the property developer to neutral from overweight. City valuations look set to fall 20% this year and sentiment and the value outlook for the City is weak, with British Land's exposure in the sub-sector standing out, JPM says. The company's net asset value is likely to miss expectations at its first-half results on Nov. 13, the brokerage says. "Valuation isn't stretched, but catalysts for a stock-specific re-rating look hard ahead of a turnaround in City offices," JPM analyst Neil Green says in a note, also cutting the bank's price target on the stock to 410 pence from 505p. Shares fall 0.4% to 313p. ([e-mail])

COMPANIES NEWS:

CMC Markets Appoints Albert Soleiman as CFO

CMC Markets has appointed Albert Soleiman as chief financial officer with effect from Sept. 1, it said Monday.

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Ergomed Agrees to GBP703.1 Mln Permira Takeover

Ergomed has agreed to a 703.1 million-pound ($885.3 million) takeover by Eden Acquisitionco, a new company controlled and owned by funds advised by Permira Advisers.

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Advanced Medical Solutions Warns of Performance Impact Due to Royalty Stream Issues

Advanced Medical Solutions Group warned that its financial performance for 2023 will be affected due to the uncertainty around royalty stream and the higher destocking of its LiquiBand product in the U.S.

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Franchise Brands Changes Board Structure

Franchise Brands said that it will change the board structure given the significant growth of the group following the acquisition of Filta and Pirtek Europe.

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Belvoir Confident in Meeting Full-Year Expectations After 1H Profit, Revenue Rose

Belvoir said its pretax profit and revenue both rose despite challenging market conditions, that it is confident in meeting its full-year expectations, and hiked its dividend.

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Mosman Oil & Gas Chair John Barr Steps Down

Mosman Oil & Gas said that Chair John Barr has decided to step down from the board with effect from Sept. 30, without disclosing further details.

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Primary Health Properties Appoints New CEO

Primary Health Properties said it has appointed Mark Davies as chief executive officer with effect from the conclusion of the company's annual general meeting on April 24, 2024.

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Datalex Appoints Jonathan Rockett as New CEO

Datalex has appointed Jonathan Rockett as chief executive officer to replace Sean Corkery who announced his plan to step down in July.

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Ashtead Technology Pretax Profit, Revenue Rose on High Demand

Ashtead Technology Holdings first-half pretax profit and revenue rose, driven by continued high demand in both offshore renewables and oil and, the subsea equipment-rental provider said Monday.

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Zenith Energy Pulls Out From $21.6 Mln Deal for OMV Yemen

Zenith Energy said that it has terminated a deal to buy the outstanding shares of OMV Yemen as conditions to complete the agreement weren't satisfied.

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Physiomics Names Peter Sargent as New COO

Physiomics said it has appointed Peter Sargent as chief operating officer, effective immediately.

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Centralnic to Rebrand as Team Internet Group

Centralnic Group said it will rebrand itself as Team Internet Group and that from Tuesday its shares will trade under the ticker TIG.

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Serinus Energy Names Vlad Ryabov as CFO of Serinus Group

Serinus Energy said it has appointed Vlad Ryabov as chief financial officer of the Serinus Group of companies.

MARKET TALK:

European Stocks Rise After Asia Rally; Tech Shares Gain

1321 GMT - European stocks rise after upbeat trading in Asia, with tech stocks among the biggest risers. The Stoxx Europe 600 and FTSE 100 advance 0.3% and the CAC 40 and DAX climb 0.2%, with the likes of ams-Osram, Infineon Technologies and BE Semiconductor Industries gaining most. Brent crude trades flat at $88.57 a barrel. Asia stocks rose, with markets in mainland China and Hong Kong rallying more than 1% and 2%, respectively. "Hopes of more China stimulus lifted the Hang Seng and other Asia markets," IG analysts write. "In Japan, corporate profits hit a record in the second quarter, putting new strength into Japanese indices. U.S. markets are closed for Labor Day, leaving European investors facing a quiet session." ([e-mail])

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Ergomed Investors Should Wait and See on Takeover Bid

1144 GMT - Ergomed shares surge 28% to 1342 pence after the pharma-industry services provider agreed to a 703.1 million-pound ($885.3 million) takeover by an arm of private-equity firm Permira Advisers. The 1350p recommended offer from Permira looks good, but investors should hold on and see if a competing bid emerges, Liberum Capital says. "We think there's plenty of scope for trade interest and that a trade player could afford to pay between 1400p and 1500p, after taking into account synergies and cost savings," Liberum analysts write, downgrading the stock to hold from buy, but increasing their price target to 1350p. "We note that only one investor has signed a non-binding letter of intent, suggesting investors don't view this as a knock-out price either." ([e-mail])

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Trident Royalties Lithium Acquisition Offsets Recent Downgrade

1127 GMT - Trident Royalties's addition of the Paradox Basin lithium project to its portfolio is well-timed, as recent share weakness posits a good buying opportunity, Liberum analysts write in a research note. The acquisition offsets Liberum's recent valuation downgrade following the news that Mexico was cancelling lithium concessions in a mine that includes Trident's asset Sonora, the analysts say. Shares fell 2.4% Friday on the news, which the analysts see as "an over-reaction, driven by retail selling," they say. Additionally, Trident could see a rapid expansion of operating free cash flow, if the Paradox Basin project is anywhere near as profitable as hoped, they say. Liberum rates the stock buy and raises its price target to 81 pence from 76 pence. ([e-mail])

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Standard Chartered Seen Dented by Slower China Recovery

0959 GMT - A more balanced approach to Standard Chartered is warranted in the near term given the stresses in the Chinese real-estate sector, Keefe, Bruyette & Woods says in a note. "It is now clear that elements of Chinese recovery are more fragile than might have been expected," analysts Perlie Mong and Edward Firth write, noting that peer HSBC has limited direct exposure, but that a slower recovery in the country would likely reduce their Asia growth prospects. KBW remains confident on StanChart's medium-term outlook but cuts the stock to underperform from market perform citing share price outperformance against HSBC, higher exposure to Asia and emerging markets, risks to underlying profitability given higher reliance on markets trading income and higher interest rate sensitivity. ([e-mail])

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Diversified UK Asset Managers Are Better Placed, JPM Says

0932 GMT - U.K. asset managers that have a diversified business model are better placed than those relying on the recovery of investor demand for emerging markets, JPMorgan Cazenove says in a note. Schroders is the crown jewel for its conscious repositioning toward asset classes that offer growth and client longevity, which will allow it to benefit from strong net flow and asset under management growth, analysts say, reinstating its overweight rating. Ashmore--restarted at underweight--is exposed to the challenging near-term outlook for emerging markets and has limited scope for further cost efficiencies, they say. Ninety One's higher diversification gives it the flexibility to offset some emerging market headwinds and any prolonged revenue slump, they add on the neutral-rated stock. ([e-mail])

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FTSE 100 Rises on Improved Sentiment in Asia

0924 GMT - The FTSE 100 rises 0.8% to 7520 points on improved sentiment in Asia after Chinese officials lowered downpayment requirements for first and second-time home buyers, supporting greater economic growth in China, AJ Bell investment director Russ Mould says in a note. In addition, creditors agreed to restructure bond repayments for struggling developer Country Garden, adding to the positive sentiment. "The FTSE 100 started Monday 0.5% higher at 7,503, led by miners, housebuilders and packaging firms - all economically-sensitive sectors," Mould says. Chinese-sensitive mining companies Glencore, Anglo American, and Rio Tinto are the biggest gainers up 2.7%, 2.4% and 2.2% respectively. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

09-04-23 0939ET