Hints and tips:
...An incremental positive for the asset mgmt industry....
...COVID-19 has delayed the update/ publication of mgmt’s findings (expected in FY21F) and although we do not expect revolution, we expect mgmt to revisit, retest and create a plan for future growth (building...
...Post a strong Q1 update . . . we leave our FY20-22e earnings unchanged as we expect limited impact from a cost or demand perspective....
...Capital allocation RIO has clearly articulated its capital allocation priority – sustaining capex > ordinary dividend > further capital mgmt./growth/debt mgmt....
...Our interpretation of resilient 2020 guidance implies limited consensus estimate changes (albeit dependent on Other Income)....
...Mgmt references of land opportunities back to the levels seen in 2009 are eye catching and should help to sentiment....
...#2: Mgmt change offers optionality. We expect the new CEO to tackle the profitability and risk profile issues of CIB (the main reasons for our cautious stance so far)....
...With £102m of net cash as of 20 March and a further £180m drawn from its RCF, liquidity remains robust and mgmt’s strong track record gives confidence in navigating a volatile 1H20....
...And that ABF mgmt expect little, if any, need to dip into the CCFF and envisage 20/21 to see a resumption of growth capex and deleverage. Relative valuation remains compelling, despite uncertainties....
...And from Cazenove, who now see limited upside for the bank: European banks – GS results suggest limited upside to estimates (sector – Neutral) Goldman Sachs’ teleconference underlined the cautious outlook...
International Edition