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.
- 1 Astrological signs are almost all wrong, as movement of moon and sun throws out zodiac
- 2 Dad eats daughter's weed brownies, thinks he's had a stroke
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...