The week ahead: easyJet, Burberry, SSE, Royal Mail

After news that the Conservatives favour an energy tariff cap, SSE's full-year results will be interesting. We'll also be watching out for Royal Mail and easyJet.

Monday 15 May

Trading Statements

Telecom Egypt, Victrex, Diploma, Lonmin, Dignity, National Express

AGM/EGM

Fidelity European Values, Microsaic Systems, React Group

Tuesday 16 May

Budget airline easyJet reports first-half results Tuesday, with Investec analyst Alex Paterson expecting a normalised net loss of £133 million versus a £23 million deficit a year ago.

A pre-tax loss forecast of £186 million comes in under consensus by £9 million and revenue per seat is expected to have declined by 7.2%.

Still, the broker keeps their 'hold' recommendation on the stock and has just raised its target price almost 50% to £14, which gives potential upside of 7.4%. This was driven by the recent rally in sterling and fall in oil prices, which clearly is good news for the airlines.

However, Paterson says, "the potential liquidation of Alitalia and redeployment of fleet outside of Europe would benefit easyJet disproportionately given its low margins and return on average capital employed".

Trading Statements

Avon Rubber, Zytronic, Jackpotjoy, NewRiver Retail, Premier Foods, Vodafone, BTG, ITE, easyJet, CYBG, EI Group

AGM/EGM

Xaar, Rockhopper Exploration, Faron Pharmaceuticals, IWG

Wednesday 17 May

As we reported earlier in the week, the potential cap on standard energy tariffs will have big implications for utilities. Broker UBS downgraded its recommendation and price target for Centrica and, after prime minister Theresa May confirmed her intention to implement a cap, we will be interested to see SSE's further response when it reports full-year results Wednesday.

UBS's Sam Arie has cut his price target on SSE, too, but still says 'buy'. A target of 1,525p gives potential upside of 6%. Arie is more bullish on SSE because GB domestic retail accounts for just 14% of its operating profit, compared to 40% for Centrica.

"In our upside case, if the tariff cap is significantly less severe than we project, the shares could rise to 1,660p," he adds. "In our downside case, the shares could fall to 1,300p if earnings contract by more than we expect and a dividend cut is required, although we see this as unlikely."

Expect a "solid" first quarter at Premier Oil as refinancing nears completion, writes Peel Hunt. Production may even beat forecasts for 75 million barrels of oil per day pre-Catcher, it says.

"Any delays to the Catcher first oil (PHe: 4Q17) schedule will be disappointing," adds the broker, "and we will also be looking for an update on the timing of the Zama exploration well, offshore Mexico."

At a 20% discount to core net asset value, analyst James Carmichael says 'buy' up to 90p.

Trading Statements

Redx Pharma, Patisserie Valerie, Brewin Dolphin, Countryside Properties, Mitchells & Butlers, JZ Capital Partners, British Land, C&C Group, SSE, Premier Oil, Coats Group

AGM/EGM

Jupiter Fund Management, Playtech, Tritax Big Box Reit, UBM, BP, Meikles, esure, Cenkos Securities, Foxtons

Thursday 18 May

Fashion house Burberry missed expectations on a number of key metrics in last month's second-half update, causing investors to run for the exit.

Still, UBS analyst Helen Brand reckons the share still look decent value with a target price of 1,990p, and expects new finance director Julie Brown's words at full-year numbers Thursday to interest buyers.

Brown will need to explain "how the business can drive cost savings of at least £100 million, as well as the potential to improve cash flow and returns", Brand says. UBS forecasts £55 million of costs savings in full-year 2018 and pre-tax profit of £476 million.

Elsewhere, we will keep an eye on Royal Mail's full-year results Thursday, amid strike threats and the Labour party's leaked manifesto. It will renationalise the business if, by some miracle, it wins the general election on 8 June. It won't.

Trading statements

Euromoney Institutional Investor, Marston's, Thomas Cook, SSP Group, National Grid, Royal Mail, Mothercare, Investec, Booker, Bloomsbury Publishing, Burberry, Dairy Crest, Elektron, Land Securities, Balfour Beatty, Rank Group, Hargreaves Lansdown

AGM/EGM

Safestyle UK, Zhejiang Expressway Co, Novorossiysk Commercial Sea Port, Prudential, Balfour Beatty, ProPhotonix, Learning Technologies

Friday 19 May

Trading statements

LightwaveRF, Grainger, Future, Hikma Pharmaceuticals

AGM/EGM

John Laing Infrastructure Eurocell, AcenciA Debt Strategies, CPP Group, Hunters Property

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.