Carillion (CLLN)

Sector:

Support

 0.000p
   
  • Closing Price Chg:
      0.000p
  • 52 Week High: 0.000p
  • 52 Week Low: 0.000p
  • Currency: UK Pounds
  • Shares Issued: 430.30m
  • Volume: 0

Broker tips: Pearson, Mothercare, Carillion

By Alexander Bueso

Date: Friday 23 Oct 2015

LONDON (ShareCast) - (ShareCast News) - Exane BNP Paribas downgraded Pearson to ''neutral' from 'outperform' and cut the price target to 1,000p.
The bank said its investment case on Pearson was predicated on three main ideas.

It argued that cyclical headwinds, especially in US Higher Education, would abate from 2015 onwards and reckoned the transformation of the group towards digital and emerging markets would further help accelerate top line growth while operating efficiency gains would drive margin expansion.

"We were wrong," said Exane.

"We concede that it will take the group much longer to see the benefits of the hoped-for cyclical and structural turnaround. We also believe that capital allocation issues are likely to further put pressure on the shares in the near term. We do not see significant upside in the share in the short term."



Berenberg initiated coverage of Mothercare at 'hold' with a 250p price target.

"While we feel that Mothercare does have some potential to improve, we think the risk/reward ratio at current levels is not compelling."

Berenberg noted that given the severe weakness in like-for-like growth and the contraction in gross margins in recent years, management is focused on rebuilding the business, aiming for more exclusivity, less discounting and greater customer engagement within stores.

The bank said it has pencilled in an average of 1.5% LFL growth for the next four years and gross margins moving up by around 75 basis points a year.

However, it said delivery here comes with a high level of risk, adding that a 1% change in LFL affects revenue by around £4m but, given the lossmaking nature of the UK business, affects EPS by around 20%.


Carillion got a boost on Friday after JPMorgan Cazenove upgraded its stance on the construction and support services company to 'overweight' from 'neutral' as it took a look at UK contractors.

JPM said the UK non-residential construction market is in recovery mode with meaningful opportunities in both the building and infrastructure markets.

The bank said it sees the greatest potential at Interserve, Carillion and Kier Group.

"UK construction and UK services markets represent around 50%-70% of each company's revenue with the outlook for these markets solid, thus providing a strong base for growth across our forecast period."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Carillion Market Data

Currency UK Pounds
Share Price 0.000p
Closing Price Change 0.000p
% Change 0.00 %
52 Week High 0.000p
52 Week Low 0.000p
Volume 0
Shares Issued 430.30m

Carillion Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Value Not Available
Income Not Available
Growth
47.71% below the market average47.71% below the market average47.71% below the market average47.71% below the market average47.71% below the market average
63.27% below the sector average63.27% below the sector average63.27% below the sector average63.27% below the sector average63.27% below the sector average

Carillion Dividends

  Latest Previous
  Final Interim
Ex-Div 11-May-17 01-Sep-16
Paid 09-Jun-17 02-Nov-16
Amount 12.65p 5.80p

Trades for --2024

Time Volume / Share Price
0 @ 0.000p

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