The week ahead: Shell, Moneysupermarket, BoE
28th October 2016 17:26
by Alex Evans from interactive investor
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Monday 31 October
AGM/EGM
Red Emperor Resources
Tuesday 1 November
The first day of November will see full-year numbers from and, while a resurgent oil price has helped - and pumped up share prices - expect earnings heavily down on last year.
Shell may still be a top pick among the majors, though: UBS kept its 'buy' rating on the firm and upped the price target to 2,250p from 2,100p in a recent note, while rival BP received a more modest target upgrade despite being bumped down from a 'buy' to 'neutral'.
"We believe the potential for cost reduction at Shell is greater and the quality of the development/pre-development portfolio is higher," explained UBS analysts.
That "potential" for cost cutting can only have been reinforced by the recent sale of a chunk of its non-core assets in Western Canada to for over $1 billion (£857 million) in cash and shares.
Shareholders will be looking for signs in Tuesday's results that the sale is part of a bigger picture that shows CEO Ben van Beurden's plan is working.
Moneysupermarket.com
Third-quarter results from are expected to show the financial comparison website "coming out fighting" after a gruelling summer of Brexit-related worries, a weighed-down share price and the demerger of its heavily-marketed Gocompare insurance site.
It's hoped investor sentiment at these results may be bolstered by recent news that chief executive Peter Plumb will be replaced by 4 May 2017.
The new man, Mark Lewis, currently retail director at high-end department store John Lewis, has a reputation as a whiz in online businesses, which should help the website maintain its commanding position.
"We expect Moneysupermarket to be robust in its commentary on the outlook in the face of the weak share price," says Peel Hunt's Malcolm Morgan, who's looking for full-year adjusted pre-tax profit of £105 million from sales of £310 million.
That's up from £99.5 million and £282 million respectively in 2015. Forecast EPS is 15.3p, up 6% from 14.5p last time.
Morgan calls the share a 'buy' with a 340p price target, implying around 29% of upside.
Trading Statement
Shire, BP, First Derivatives, Apax Global Alpha, Egdon Resources, Weir, Standard Chartered, Go-Ahead
AGM/EGM
Aggregated Micro Power
Wednesday 2 November
Trading Statement
Livanova, Smurfit Kappa Group, Millennium & Copthorne Hotel, Persimmon, Next, Just Eat, JD Wetherspoon
AGM/EGM
Thursday 3 November
Market-watchers the world over will have their eye on Thursday's Bank of England policy decision and inflation report, although odds of further rate cuts look much longer now following better-than-expected third-quarter GDP growth.
The Bank's forecasts on inflation are more to the point, however. With sterling's value at multi-decade lows, experts seem certain the UK will now see its first real bout of inflation in a decade, as the consequences of the Brexit vote filter through into the economy.
That said, considering we've a government suppposedly prepared to wade in and shore up Britain's economy if necessary - and the fact we haven't actually left the EU yet - some number-crunchers are inclined to see the upside.
"We are of the view that the promise of a less austere fiscal stance, the unchanged EU trading backdrop and ongoing loose credit arrangements will continue to support the UK expansion into fourth-quarter," wrote Panmure Gordon's chief economist Simon French Friday.
"The recent recovery in UK purchasing managers' indexes (PMIs) is expected to continue as the October data is released and should encourage the monetary policy committee to keep their powder dry into 2017."
Just how serious (or otherwise) the numbers really are, we'll find out from governor Mark Carney and co. on Thursday.
Trading Statement
Lancashire Holdings, Howden Joinery Group, Indivior, Inmarsat, Tate & Lyle, Randgold Resources, Matchtech Group, Coca-Cola, WM Morrison, Smith & Nephew, Schroders, Croda International, RSA Insurance
AGM/EGM
Friday 4 November
Trading Statement
Paddy Power Betfair, Kennedy Wilson Europe Real Estate, Informa
AGM/EGM
Jupiter Energy
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.