Member Info for livestock

Boyobach
"I’m not convinced that the latest rally has the legs"

The rising interest rates is a game-changer for banks Lloyds still oversold

Lloyds Banking Group PLC (LSE:LLOY) and HSBC Holdings PLC (LSE:HSBA) are the only of the UK’s major banks now rated as 'outperform' by RBC, with the Canadian bank saying the sector has become more expensive since its previous update three months ago.

Banks start to report fourth-quarter numbers next week and RBC believes that anything other than solid top-line performance may receive a poor market reaction.

On the plus side, deposit rates (betas) are still under 50%, with that likely to mean good margins in the updates especially as mortgage spreads have widened and stayed there since the chaos of last year.

Costs and risk are worries across the sector, while RBC said it is below consensus on estimates on loan growth, where it is concerned about first-time buyer mortgage volumes.

Overall, UK bank shares have become more expensive, says RBC, but the outlook remains 'constructive' with “25% implied upside across our coverage”.

In order of preference, HSBC ranks first, Lloyds second with Natwest and Barclays are left holding the wooden spoons.

Shares in Lloyds were up 3.2% at 52.6p on Thursday afternoon and HSBC nudged up 0.6% at 601.8p

FTSE 100 expected to open slightly higher on Friday after gains in the US following better than expected GDP figures.

Spread betting companies are calling the lead index up by around 7 points

john grant From OAG was on CNBC yesterday was asked if any hidden jem's in the industry he tipped up IAG with plenty of upside the thing to look out for is the share of capacity the carrier has and how much scope for more competition to come into these markets, Heathrow and Gatwick there's no more room in the inn, plenty of upside for IAG

Bubble2021

It does look good I've just downloaded the app

Wizz air just CEO just on CNBC the third quarter losses €2.8mln has spooked the markets

Lloyds Banking Group has invested £4 million in Caura, an award-winning all-in-one motoring app designed to take the hassle out of car ownership.

https://www.lloydsbankinggroup.com/media/press-releases/2023/lloyds-banking-group-2023/group-invests-4m-in-car-management-app-caura.html

Wizz Air Holdings PLC (AIM:WIZZ) has reported more than doubled revenues in the third quarter and reduced losses as passenger numbers soared by 59.1%.

In a trading update the budget airline operator posted third quarter revenues of €911.7mln, up 123.2% with an EBITDA loss of €2.8mln, down from €87.5mln last year.

Operating losses for the quarter were €155.5mln compared to €213.6mln last time while the load factor improved by 10.2 percentage points to 87.3.

Revenue per available seat kilometre (RASK) jumped 50% to €0.03.73c and is now 4% higher than pre-pandemic levels.

The company still expects to post an overall net loss in fiscal year 2023 but remains “remain confident” that fiscal year 2024 will be profitable

FTSE 100 is expected to open higher on Thursday after a rebound US markets following losses and ahead of a hefty batch of corporate updates in the UK.

Spread betting companies are calling the lead index up by around 25 points

NatWest Group PLC (LSE:NWG), Lloyds and other UK banks have received a bullish update from Goldman Sachs, pushing share prices across the sector higher.

The US investment bank reiterated a ‘buy’ rating on NatWest ahead of fourth-quarter results due on 17 February, where it expects the high street lender to show an increase in net interest income (NII) to £3bn, up from £2.6bn in the third quarter.

This would take the annualised rate to £12bn, or £4.4bn more than the £7.6bn achieved in 2021.

“The sharp step-up is driven by policy rates with the step-up being more back-end loaded into the second half and particularly teh fourth quarter,” Goldman noted.

“We see the NII uplift driving a step change in profitability, lifting return on total equity by 11 percentage points towards around 18-20% by 23/24 which we find has not been reflected in valuation” the bank added.

Goldman also lifted its price target for NatWest to 490p from 460p with the company on the broker's conviction buy list.

The bank also likes Lloyds Banking Group PLC (LSE:LLOY), where it reiterated a buy rating with an increased price target of 76p (from 73p) and Barclays where the rating is also a buy with a price target of 280p, up from 255p.

Lloyds results are due on 22 February, following Barclays on 15 February, Standard Chartered on 16 February and HSBC on 21 February.

Shares in Natwest rose 0.7% to 300.7p, while Lloyds was up 2% to 51.06p.

https://www.proactiveinvestors.co.uk/companies/news/1004329/lloyds-banking-natwest-and-barclays-all-liked-by-goldman-sachs-on-margin-outlook-1004329.html

Share price is looking good for 60p on the next set of results 22 February

Goldman Sachs raises Lloyds Banking price target to 76 (73) pence - 'buy'

The number of first-time buyers fell by 11%, to 362,461, in 2022 compared to the year prior, according to new analysis from Halifax.

https://www.lloydsbankinggroup.com/media/press-releases/2023/halifax-2023/more-than-six-in-10-first-time-buyers-go-joint-to-get-on-housing-ladder.html

The number of first-time buyers fell by 11%, to 31,184 in 2022, compared to the year prior, according to new analysis from Bank of Scotland.

https://www.lloydsbankinggroup.com/media/press-releases/2023/bank-of-scotland-2023/scottish-first-time-buyers-paying-almost-190000-to-get-on-housing-ladder.html

Jan 25 (Reuters) - EasyJet (EZJ.L) on Wednesday said it expected to beat current market expectations for 2023 based on the strength of bookings into summer and was set to deliver a full-year profit, fueling cautious optimism for an aviation sector set on recovery.

The British airline reported a headline loss before tax of 133 million pounds ($163.9 million) for the quarter to end-December, and said it expected its loss before tax for the first half to be significantly better than in the first half of 2022.

EasyJet Holidays also upgraded expectations from 30% customer growth to around 50% year-on-year and said the airline had almost 50% more customers than last year.

Many are hopeful that, even with a recession in Britain, travellers won't sacrifice their holidays, as the aviation sector aims for an ongoing recovery towards 2019 traffic levels.

"This strong booking performance, aided by the airline's step changed revenue capability, has driven an 80 million pound year-on-year boost in the first quarter with continued momentum as customers prioritise spending on holidays for the year ahead," Chief Executive Johan Lundgren said in a statement

LONDON, Jan 24 (Reuters) - The Bank of England will lift the Bank Rate by 50 basis points on Feb. 2 to 4.00% and then add another 25 basis points in March before pausing, according to a Reuters poll of economists who said the greater risk was that it would do even more.

Britain's central bank was one of the first among global peers to begin raising borrowing costs and has added 340 basis points since it began the current cycle in December 2021 to tame inflation now running at more than five times its 2% target.

https://www.reuters.com/markets/europe/bank-england-lift-rates-4-feb-2-finish-425-march-2023-01-24/

Fraudsters targeting victims to make upfront payments for products and services that don’t materialise
Reported cases jumped by more than 80% last year with victims losing £711 on average
Concerns raised that the rising cost of living is significantly increasing the risk of certain types of scams
Fake ads for loans, jobs and rental properties among the most common tactics currently being used by criminals
Reports of ‘loan fee’ scams have more than doubled over the last year, with victims typically losing around £200

https://www.lloydsbankinggroup.com/media/press-releases/2023/lloyds-bank-2023/urgent-warning-issued-over-surge-in-advance-fee-scams.html

With markets forward looking Lloyds should smash the 50p barrier it's looking like BoE will hike rates another 50 basis points next week adding another £350 million to it's £2.350 billing earnings from it's loan book

UK
proactive logo
Airline share targets hiked as pricing will be 'much stronger' than forecast - analyst
12:31 Tue 24 Jan 2023
Oliver Haill
View
easyJet PLC
LSE:EZJ
easyJet PLC -
easyJet is the only European airline rated 'sell' by Deutsche Bank

Target prices for British Airways owner International Consolidated Airlines Group SA (LSE:IAG), easyJet PLC and other airlines were upped by Deutsche Bank on Tuesday ahead of coming results updates.

Shares in the European carriers have risen by an average of 20% since mid-December, when analyst Jaime Rowbotham provided his previous outlook for the fourth quarter of 2022.

This is pricing in “what is clearly going to be a much better year than we had previously envisaged”, he said.

Forecasts from Deutsche have now been updated to reflect the superior operating environment, with target prices lifted to reflect this.

For IAG the target price was lifted to 180p from 155p, with the recommendation kept at ‘hold’. For easyJet, rated ‘sell’ by the bank, the target was hiked to 410p from 330pp

https://www.proactiveinvestors.co.uk/companies/news/1004177/airline-share-targets-hiked-as-pricing-will-be-much-stronger-than-forecast-analyst-1004177.html

British Airways owner International Consolidated Airlines Group SA (LSE:IAG) and easyJet PLC (LSE:EZJ) have been given higher share targets and tipped as ‘buys’ over the potential for further growth headroom.

Airlines are still “in the early stages of recovery from the pandemic”, said Liberum analyst Gerald Khoo in a note on Tuesday.

He cited positive factors for the sector being “relatively careful” plans from companies to grow capacity, moderating and stabilising jet fuel prices and “encouraging” recent commentary about forward bookings.

https://www.proactiveinvestors.co.uk/companies/news/1004153/ba-owner-iag-and-easyjet-offer-more-upside-as-airline-recovery-still-in-early-stages-1004153.html