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Tuesday newspaper share tips: OneSavings Bank and Wolseley

Tue, 07th Jun 2016 15:48

(ShareCast News) - Business is booming for OneSavings Bank, which has just clocked up a £35m profit after selling a £250m securitisation of pre-crisis mortgages, writes the Financial Times' Lex column.The buy-to-let lender intended to use the dosh to originate more mortgages, and its loan books have swollen by more than a third each year since 2013.And yet, noted the column, shares in OneSavings Bank have lagged Lloyds'. This was true also of other buy-to-let lenders Shawbrook and Aldermore.Lex reckoned valuation could be the reason, observing that the stock trades at a twice-2017 book value, which was rather high for a European bank.It also looked to a list of bearish points, among them increasing purchase taxes, Brexit and further cuts to tax relief of buy-to-let mortgages."Yet lending keeps growing," wrote the column. In April it was up 16% on the year to £18.5bn, according to Council of Mortgage Lenders' estimates.But also Lex contended that these factors would help so-called professional landlords -- those with four properties or more -- who could absorb the higher costs and would want more services, such as setting up tax-efficient corporate structures.Property consultancy thought that the proportion of UK homes rented out privately would rise four percentage points to 22% in the next five years."A share contraction in the property market would hit buy-to-let lenders hard," said Lex."But anyone worried about a housing crash should not own shares in a UK bank."Meantime, The Telegraph's Questor column also dipped into the property-related theme, slapping a "Sell" opinion on the hsares on plumbing supplies business Wolseley.It pointed to a 10% slump in the outfit's shares after a grey third-quarter trading update."There could be more pain to come as slowing growth at the FTSE 100-listed company leaves the shares exposed," contended the column.Wolseley generated most of its revenue and profits in the UK, and warned that industrial markets -- contributing about 14% of the US' £8.3bn revenues -- experienced weaker demand."The company operates the Ferguson brand in the US, where orders have been lower due to a slump in activity from oil and gas-related customers," Questor said.It also pointed the global commodity slowdown, which had put a damper on Wolseley's Canadian and Nordics businesses, and noted the tough trading in Wolseley's home UK market."Here (in the UK), like-for-like revenues were down 0.4%, during the third quarter as repairs and maintenance remain weak. The company will report on a review of UK operations in August."Nevertheless, Wolseley did post 2.8% like-for-like revenue growth."The concern is that the US juggernaut is showing signs of slowing and that leaves the shares trading on 15-times forecast earnings looking exposed," Questor noted."The company reports annual results on September 27, with the market expecting revenue of £14.3bn and pre-tax profits of £860m, giving 246p in earnings per share."The issue for investors was the building supplies business had a track record of being extremely cyclical."Looking back to the previous peak in 2006, the shares fell almost 90pc during the next two years as the slowdown hit. Sell."

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11 Nov 2016 09:55

Friday broker round-up

(ShareCast News) - Imperial Brands: JP Morgan keeps at neutral with a target price of 3660p. Standard Life: Berenberg stays at buy 416p target. Barclays: Societe Generale upgrades to buy with a 235p target. UBM: Barlcays reiterates equal-weight with a 755p target. Derwent London: Goldman Sachs ke

10 Nov 2016 14:35

Broker tips: Bovis Homes, Aldermore, miners

(ShareCast News) - Numis reiterated an 'add' rating and a target price of 939p on Bovis Homes on Thursday after the housebuilder reported a full year trading update. The company said it expects to deliver record revenues in 2016 as the backdrop for UK housebuilding continues to be positive, with dem

10 Nov 2016 09:41

RBC Capital ups Aldermore to 'outperform' after Q3 results

(ShareCast News) - RBC Capital Markets upped its stance on Aldermore to 'outperform' from 'sector perform' and lifted the price target to 210p from 190p after the challenger bank's third-quarter update. The bank pointed to strong growth in the quarter and reassuring guidance from the group for the f

10 Nov 2016 08:58

Aldermore increases new lending to business customers

(ShareCast News) - Retail bank Aldermore's new lending to business customers increased in the year to date, while capital growth rose in the third quarter. For the nine months ended 30 September, net loans were up 15% to £7.1bn, compared to the same period last year, due to greater levels of new len

10 Nov 2016 08:39

LONDON MARKET OPEN: Stocks Add To Trump Bounce

10 Nov 2016 08:01

Aldermore Sees No Slowdown In Demand As New Lending Increases

8 Nov 2016 08:00

Glyn Jones signals exit from Aldermore

(ShareCast News) - Aldermore Group announced on Tuesday that on 7 November, Glyn Jones tendered his resignation as non-executive chairman and director of the company, with effect from 6 February 2017. The FTSE 250 firm said Jones has decided to step down from the board following a review of his time

26 Oct 2016 09:12

Banks' mortgage approvals rebound from low, BBA data shows

(ShareCast News) - Mortgage approvals from high street banks rebounded slightly in September, according to data from high street banks, after hitting a 19-month low in August. The British Bankers' Association (BBA) revealed mortgage approval numbers in September of 38,252, which was up from 37,241 i

25 Oct 2016 11:46

Credit Suisse sees rising risks for challengers banks Aldermore, Shawbrook

(ShareCast News) - OneSavings Bank received an upgrade but Aldermore and Shawbrook were downgraded by Credit Suisse as it warned the risks facing the UK's challenger banks were "becoming harder to ignore" heading into 2017. Following solid share price recoveries in recent months, the risk-reward for

25 Oct 2016 07:15

LONDON BRIEFING: Pound And Shares Firm Ahead Of UK Airport Decision

18 Oct 2016 16:17

Sector movers: Retailers rise to the top

(ShareCast News) - Retailers led gains in the market, with Tesco and Sainsbury leading the pack north on the heels of the latest sector survey results. During the last three months the former notched up its first market share gain in five years, with sales by 1.3% and market share by 0.1 percentage

5 Oct 2016 16:07

LONDON MARKET CLOSE: Investors Cash In Profit While Pound Hits New Low

4 Oct 2016 10:37

Barclays ups Aldermore and OneSavings to 'overweight'

(ShareCast News) - Barclays upgraded challenger banks Aldermore and OneSavings Bank to 'overweight' from 'equalweight' as it took a look at UK specialist lenders. It lifted its price target for Aldermore to 200p from 150p and said it should benefit from growth in the specialist buy-to-let and SME se

23 Sep 2016 08:34

RBC ups targets on specialty lenders due to UK economic resilience

(ShareCast News) - Analysts at RBC revised their price targets for UK challenger banks higher as a result of the resilience shown thus far by the economy and the support provided by the Bank of England. The broker also revised its forecasts higher for Aldermore,Close Brothers and Shawbrook. "While

6 Sep 2016 13:25

Tuesday newspaper share tips: Lloyds, Aldermore, Hunting

(ShareCast News) - Lloyd's Banking Group will continue to struggle as downgrades from two brokers showed, sending its shares promptly lower, according to The Telegraph's Questor column. Things had been looking up for potential investors in the bank at the start of the year as the government prepa

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