Hints and tips:
...Key economic and company reports Here is a more complete list of what to expect in terms of company reports and economic data this week....
...France L&S and Italy will not pay dividends this year, and XL Bermuda is unlikely to. The slack is only partly taken up by France P&C which is over distributing....
...L&G and its UK life peers were broadly allowed to pay dividends at FY19. Further, the UK regulator’s recent stress tests commentary suggest limited risk for life companies....
...On our new estimates, L’Oréal trades on an FY21E P/E of 32.6x, the highest premium versus the consumer staples sector for over 10 years....
...Net debt’s nearly £4bn which again is no worse than expected....
...Today’s early rally seems to be fading a bit, having always been easier to attribute to net underweight equities positioning than curve-flattening V-shaped optimism....
...Rate relief drops away in FY22 so the recovery profile, in EPS at least, is not V-shaped....
...The bulls will point to a P/B below 1, FY21e EV/EBITDA of 4x and EFCF Yield of 8% as evidence of clear value....
...Since 2016, we estimate the Kingfisher P&L has had an £81m transactional benefit from weaker sterling. FX could become a headwind once trade talks are agreed (or not)....
...What happens further down the P&L is largely a question of capital structure, but it appears most will be either loss-making or make only marginal PBT....
...With top-line beat flowing through the P&L, core op. profit was +8% vs cons and core EPS +12%. ¾ of the EBIT beat seems inventory related. Q: What were the most noteworthy areas in the results?...
...V, U, or L? The nature of Covid-19 growth impact means that some elements – e.g., production resumption, inventory restocking, and travel normalisation – would lend a natural rebound to growth....
...Our small estimate changes reflect less net M&A contribution in 2019, which flows through into 2020....
...L, until the final CMA decision, expected on 11 May....
...Based on company commentary so far, we still believe potential COVID-19 claims (including BI) are a manageable P&L event for the sector, although the devil will be in the detail when it comes to BI policy...
...Shot: NMC Health plc (“NMC” or the “Company”) notes the recent media speculation and confirms that it has received highly preliminary approaches from Kohlberg Kravis Roberts & Co. L.P....
...It gets straight to the point: We now assume an L-shaped RevPAR recovery (previously V-shaped), based on Jefdata consumer surveys, corporate guidance and industry forecasts. .....
...Against the general trend, yesterday Ferrari confidently guided to a V-shaped recovery in its P&L from H2/20....
...Today’s 20x P/E is appropriate if EPS growth is accelerating, we think,but not if it’s decelerating,and the +40% valuation premium to other cyclical chemical companies is now close to peak....
...It is a good way of securing a decent price, while creating a safety net if institutions give the company the raspberry during marketing for the initial public offering....
...The Edam Acquisition consortium, comprising Goldman Sachs Capital Partners, Mediacinco Cartera SL, Cyrte Fund II B.V. and VI, L.P., acquired control of 99.7% of Endemol Investment Holding BV from Telefonica...
...Jones v. Harris Associates L.P., which will be argued this week, clearly demonstrates that lowering the “loser pays” barrier could have serious consequences....
...The US should manage to avoid an L-shaped recession – and may even escape with a short V-shaped recession....
...Given a lack of defaults, the instruments should perform fine if one can survive the P&L volatility of the tranches....
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