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bet365 owners explore potential nine billion pound sale of gambling business
The Coates family, owners of Bet365, are considering a potential sale of their online gambling empire, which could be valued at £9 billion. Discussions with Wall Street banks and private equity groups have taken place regarding a full or partial sale, with options including a pre-float stake and a future listing on a US stock exchange.
analysts adjust ratings and price targets for london listed shares
Analysts have made several adjustments to London-listed shares, with RBC downgrading Ashtead Group to 'sector perform' and Goldman Sachs lowering its price target. UBS also cut ratings for United Utilities and National Grid to 'neutral', while Bank of America raised targets for St James’s Place and Phoenix Group. Other notable changes include Barclays downgrading Hammerson to 'underweight' and Citigroup adjusting targets for various companies, including Flutter Entertainment and Standard Chartered.
ubs highlights strong growth potential in european cables sector
UBS Global Research has initiated coverage on the European cables sector, forecasting a 14% compound annual growth rate in high-voltage (HV) cable demand from 2022 to 2028, driven by infrastructure projects and renewable energy investments. Nexans is highlighted as well-positioned for growth, while NKT faces challenges, receiving a "sell" rating due to margin pressures. Prysmian holds a "neutral" rating amid concerns over its ability to achieve €3 billion in EBITDA by 2028, with risks stemming from competitive pressures and the cancellation of a US HV production facility.
deutsche bank upgrades pennon to hold following rights issue announcement
Deutsche Bank has upgraded Pennon to 'hold' from 'sell' and raised its price target to 570p from 490p, following a £490m rights issue. The stock has performed well post-announcement, and despite a material dividend cut, it is expected to yield around 6%, surpassing peers United Utilities and Severn Trent.
deutsche bank upgrades pennon group to hold raises price target to 5.70
Deutsche Bank has upgraded Pennon Group's stock rating from Sell to Hold, raising the price target to GBP5.70 following the company's announcement of a £490 million rights issue. Despite a significant dividend cut, the stock has performed well, with anticipated yields around 6%, surpassing peers like United Utilities and Severn Trent. Investors are advised to monitor the stock's performance as it transitions to ex-rights trading next week.
ubs strategists warn of tech stock valuations and bond yield risks
UBS strategists, led by Andrew Garthwaite, warn that a 5% yield on the US 10-year Treasury could signal a negative shift for equities, with a 35% chance of a stock market bubble emerging if bubble areas exceed 30% of global market cap and P/E ratios hit 45x or higher.Currently, the "Mag 6" tech stocks have a P/E ratio of 34x. UBS forecasts a decline in US bond yields to 4.25% by year-end, recommending a defensive investment strategy focused on undervalued sectors like utilities and real estate, while remaining underweight on non-financial cyclicals.
ubs warns 5 percent treasury yield could signal equities downturn
UBS strategists, led by Andrew Garthwaite, warn that a 5% yield on the US 10-year Treasury could negatively impact equities, with a 35% chance of a stock market bubble emerging. They recommend focusing on defensives with low financial leverage and suggest UK bond-sensitive sectors are currently undervalued. The team anticipates US bond yields will drop to 4.25% by year-end, while highlighting Japan as the best-performing region amid rising TIPS yields.
ubs warns of equity market turning point at 5 percent bond yield
UBS strategists warn that a 5% yield on 10-year US government bonds could indicate a turning point for equities, with a 35% chance of an equity bubble forming. They recommend underweighting non-financial cyclical stocks and favor defensive stocks with low financial leverage, particularly in the UK, where they see opportunities in utilities and real estate.
european utilities face earnings decline amid changing power prices and investments
The LNG market is set to increase supply, particularly from the US, with a projected 15% rise in production. European utilities are expected to see a 3% EBITDA decrease in 2024, with a further 2% decline in 2025, while pure grid operators will benefit from a 6% EBITDA growth due to supportive regulatory frameworks and expanding asset bases.
ubs maintains buy rating on eon with target price of 16.20 euros
UBS has maintained a "Buy" rating on Eon with a target price of 16.20 euros. Analyst Mark Freshney noted that the European utility sector has lagged behind the market due to rising bond yields and concerns over capital needs, despite stable earnings momentum and low valuations that suggest growth potential. Freshney's top picks include Iberdrola, Eon, National Grid, and SSE, while he holds a negative outlook on Severn Trent, Uniper, and Verbund.
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