Market Report: Sports Direct's rise makes it ripe for a fall - but when?
Thursday 17 April 2014
Sports Direct's stratospheric rise since going public makes it ripe for a fall, but Merrill Lynch doesn't think that will happen any time soon.
The broker reckons that online sales and expansion into Europe will help the discount sports retailer to grow at a compound rate of 7 per cent over the next 10 years. Merrill raised its price target and earnings forecast, ahead of a trading statement next week.
Investors were more than willing to pile into Sports Direct after a recent dip in price, caused by founder Mike Ashley cashing a £200m stake.
The retailer was the day's best performer, adding 42p to 787.5p, but that's still well below the 922p high it managed to reach less than two weeks ago.
British Airways' owner, IAG, was boosted by a note from HSBC. The bank thinks the recent pull-back in price makes it a good time to buy into this solid performer. Investors agreed and IAG rose 19p to 395.2p.
Positive UK unemployment figures and better-than-expected GDP data in China saw the FTSE 100 close up 42.56 points at 6,584.17.
Help to Buy is still boosting Persimmon, with the housebuilder announcing yesterday that it had sold 5,000 properties under the government scheme. Persimmon added 10p to 1,275p.
Two other operators in the property sector are busy cashing in on London's booming housing market. Landlord Grainger, 5.9p ahead at 222.4p, snapped up 61 homes in Kensington and Chelsea for £160m, while Telford Homes, 4p better at 341p, forecast a cumulative pre-tax profit of £120m over the next four years thanks to the capital's dizzying market.
The insurer Lancashire Holdings trailed the mid-cap index, down 37.5p at 664.5p, after revealing that its chief executive and founder, Richard Brindle, is leaving at the end of the month.
The digital voucher company Eagle Eye made a solid debut on Aim. The company climbed to 180p after floating at 164p.
Snoozebox, the portable hotel group which provides temporary rooms for the likes of Silverstone and Glastonbury, tumbled 1.37p to 10.12p after revealing widening losses to £9.4m from £4.2m a year earlier.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits record low as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Germany sees 'visible rise' in support for far-right extremism in response to perceived 'Islamisation' of the West
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...