Week ahead: Hunting, Playtech, Amec, Petrofac, WPP, Cape, Lamprell

Monday 24 August

Trading statements

Bunzl, FBD Holdings, BATM Advanced Communications, Headlam Group, Kingspan Group, Industrial Multi Property Trust , Amlin.

AGM/EGM

CEB Resources, Northern Bear.

Tuesday 25 August

Petrofac's first-half results are likely to be "messy", according to the experts at Investec, mainly due to higher-than-expected, but previously flagged, costs. However, the oil services group has indicated that underlying results for the full year will be significantly weighted to the second half.

Investec expect group revenue for the first half to come in at $3.36 billion and EDITDA (earnings before interest, tax, depreciation and amortisation) at $311 million. An interim dividend of 22 US cents will most likely be maintained, also.

Investec's earnings forecasts remain unchanged, but its SOTP-based price target has been reduced from 835p to 825p on sterling strength. 'Hold' says the broker.

Trading statements

Fisher (James) & Sons, Capital Drilling, Petrofac, Regus, Puretech Health, Gulf Marine, Antofagasta, FBD Holdings, Al Noor Hospitals Group, BHP Billiton.

AGM/EGM

1pm, Acorn Income Fund, Blue Planet European Financials Investment Trust, Blinkx, Rensburg Aim Vct.

Wednesday 26 August

Advertising giant WPP will release interims midway through the week. Shareholders shouldn't expect any major divergence from trends highlighted in its June AGM, says Westhouse Securities analyst Roddy Davidson.

"We are pleased by the positive momentum evident in recent updates and expect WPP to produce a combination of strong EPS [earnings per share] and DPS [dividends per share] progress (34% and 48% three-year aggregate growth, respectively) and robust cash generation (111% average conversion from operating profit), driven by its overweight exposure to digital disciplines/faster-growing regions, the benefit of complementary acquisitions, margin gains and share buy-backs," says Davidson.

"We regard our full-year forecasts as beings solidly underpinned and believe the group's current valuation offers good upside potential."

Westhouse reiterates its 'add' recommendation ahead of the results. Its 1,732p target price remains unchanged.

Despite liking the management-driven-turnaround story at Cape, Investec has reduced its target price from 290p to 275p and cut full-year 2016-17 EPS forecasts. The oil services company will report interims on Wednesday.

"With revenues from stable maintenance activities at 70% of group in FY14 and just 5% from upstream oil & gas projects (typically at risk of deferral) plus more resilient capex exposure in MENA, Cape appears better placed than most to weather the industry downturn," says the broker, which maintains its 'hold' recommendation.

Trading statements

PP Group, Carillion, Cape, HSS Hire, Bioquell, SkyePharma, APR Energy, Anglo Pacific Group, AFI Development, BH Macro Limited, NMC Health, Paddy Power, Stagecoach Group.

AGM/EGM

Oxford Technology 3 Venture Capital Trust, Oxford Technology 4 Venture Capital Trust, Ovoca Gold, Great Eastern Energy Corporation, Igas Energy, Livermore Investments Group, Latham (James), Motive Television, Iomart Group , New Century AIM VCT, Coral Products, Oxford Technology 2 Venture Capital Trust, Oxford Technology Venture Capital Trust.

Thursday 27 August

Investec sees online gambling software firm Playtech's first-half results as a buying opportunity given likely acquisition benefits related to Plus500 and Avatrade.

Look for total first-half revenue growth of 35.4% and EBITDA growth of 23.4%. "We upgrade FY15E revenue to €646.1 million mainly due to FX tailwinds and white label revenue, but leave EBITDA unchanged," says Investec's Alistair Ross, who puts his target price under review, pending regulatory approval of the acquisitions.

"We see the likely completion of the Plus500 and Avatrade deals (which are not included in our forecasts) as major growth drivers," adds Ross, with a 'buy' rating on the stock.

Oil services groups Hunting, Lamprell and Amec Foster Wheeler are all due to report interims on Thursday.

For Hunting, Deutsche Bank's Sebastian Yoshida forecasts a 30% year-on-year decline in group sales and, against sharply lower volumes, expects EBITA (earnings before interest, taxes and amortisation) margins to decline to 5% in the first half versus 14% a year ago.

"The drivers of the decline in oil prices and activity in this cycle continue to suggest to us a slower and more uneven recovery that in past cycles. This should be reflected in earnings and valuation," says Yoshida. "The shares on 11x FY17 PE [price/earnings] and 6x FY17 EV/EBITDA [enterprise value] trade at a broad 40% discount to historic mid-cycle relative multiples. We view this as undemanding. While short-term uncertainty remains we retain a BUY rating. The key risk is crude volatility."

Deutsche's price target for the stock is 600p, while fellow broker Investec is bearish with a 'sell' recommendation and reduced price target of 455p from 500p.

Amec Foster Wheeler is Investec's preferred large-cap E&C player given its "asset-light, cash generative, reimbursable business model". However, operating margins seem to edge lower with each company update, says the broker, which reduces its assumptions for full-year 2016-17 estimates.

For the interims, look for group revenue of £2.63 billion, EBITA of £193 million and profit before tax (PBT) of £174 million.

"We still like AMFW's more defensive qualities but, given our cautious view on the sector, retain our Hold. Our price target [855p reduced from 895p] is based on a sector-average PE multiple of 11x", adds Investec.

In difficult conditions, Lamprell is progressing well with what it can control, says Investec. And, encouragingly for the broker, it is still wining some smaller orders while its bid pipeline remains strong.

Expect first-half revenue $420 million, operating profit of $22.4 million, PBT of $16 million and adjusted earnings per share of 4.7 US cents.

"We continue to like the ongoing turnaround story as Lamprell's strengthened balance sheet should help diversify its order intake into more on/offshore construction work. Our earnings forecasts and price target remain unchanged at 165p," says Investec, which has a 'buy' rating on the shares.

Trading statements

Servelec Group, Gulf Keystone Petroleum, Grafton Group, Oxford BioMedica, Playtech, Lamprell, Macfarlane Group, PPHE Hotel Group, John Laing Group, International Public Partnership, Hansteen Holdings, Hunting, IFG Group, Petropavlovsk, PV Crystalox Solar, Signet Jewelers, STV Group, The Renewables Infrastructure Group Limited, Arrow Global Group, Atlas Mara Co-invest, TCS Group Holding, CRH, Churchill China, Aldermore Group, Evraz, Xaar, Cairn Homes, Allied Minds, Amec Foster Wheeler, Hays.

AGM/EGM

Trafalgar New Homes, Aseana Properties, TP10, Albion Enterprise, Minera IRL, Globalworth Real Estate Investments.

Friday 28 August

Trading statements

Matomy Media Group, Kenmare Resources, Lavendon Group, Marshalls, UTV Media , British Polythene Industries, Huntsworth, Candover Investments, Chesnara, Cathay International Holdings, Restaurant Group, Charles Taylor, John Laing Infrastructure Fund, Computacenter, Exova Group, Boot (Henry), 888 Holdings, bwin.party digital entertainment , Harworth Estates Group, Computacenter.

AGM/EGM

The Fulham Shore, Stagecoach Group, Phorm Inc.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.