The Week Ahead: Mail Online is set to tell its success story

 

Laura Chesters
Monday 25 March 2013 03:24 GMT
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Today

A website best-known for its revealing stories and photos of models with cellulite and family traumas is the world's second most popular newspaper site. But investors know very little about how The Mail Online actually performs. They might get a peek into its success this week at an investor day following its trading update today. You may first think of newspapers when you come across Daily Mail and General Trust – owner of The Daily Mail – but the group has a stake in everything from online property website Zoopla to its profitable business-to-business arm. It has flogged its Northcliffe Media regional titles to new venture Local World. But the part of the business that analysts are most keen on is Mail Online.

Jefferies media team says it is looking forward to learning more about Mail Online at the investor day, and thinks it is important DMGT can clearly communicate "concisely a complex, dynamic business strategy to capitalise on the early stage success at Mail Online, while recognising that the site has yet to be monetised effectively". Jefferies rates the group a buy, and has raised their price target for the shares to 800p.

Oil explorer Afren will release its results today. Investors were cheered by news earlier this month that it has had positive tests from its well in Kurdistan. But analysts are concerned about the outlook in Kurdistan, and Liberum Capital analysts "remain cautious pending a tangible framework defining availability of export markets and payments." They rate the shares a hold with a 123p price target.

Results/Updates: Aberdeen Asset Management, Afren, Diploma, DMGT, Kentz Corporation, Finsbury Food, Infrastrata, Saville, IS Solutions, Michelmersh Brick, SpaceandPeople, Vislink, Vphase.

Tomorrow

Canteen food isn't always appetising but shares in army and school food supplier Compass have been particularly tasty, analysts reckon. Bank of America Merrill Lynch rates the shares a buy ahead of second-quarter results tomorrow, giving them a 925p target. It predicts the caterer will report 4 per cent underlying organic growth, and say it continues to believe Compass can sustain double-digit returns. It warns, however, that the second-quarter revenue growth could be lower at 3.8 per cent since it includes its exit of some of its European contracts.

Results/Updates: Bellway, Epistem, Abbey Protection, Augean, Compass, Churchill China, Corac, Corero Network Security, Delcam, Faroe Petroleum, Global Energy Development, GVC, Kazakhmys, KBC Advanced Technologies, Kingfisher, Oxford Catalysts, Office2office, Resolution, S&U, Vindon Healthcare and Wolseley.

Wednesday

There was some much-needed good news for Egypt-focused gold miner Centamin last week when a court ruled that it could keep its Sukari gold mine running in Egypt. The mine has been subject to production delays and questions over a licence amid a legal dispute. The FTSE 250 miner will report its final results on Wednesday. Goldman Sachs analysts said that, although the news week "incrementally positive", it is waiting for "the final decision to be ruled upon".

Results/Updates: Allied Irish, Amara Mining, Biome Technologies, Henry Boot, Centamin Egypt, EnQuest, ICAP, Topps Tiles, TUI Travel, IFG, Instem.

Thursday

Deutsche Bank's analysts forecast a sweet end to the year for Tate & Lyle. They expect a trading update on Thursday to confirm a good fourth quarter, with the company having met its 2013 objectives – "modest profit progress in bulk ingredients, and strong top-line growth in food ingredients". Full-year results will follow on May 30. Deutsche thinks "the group is moving to the growth phase", and retains a hold rating with a 900p price target.

Results/Updates: Earthport, James Halstead, Alent, Chesnara, DRS Data & Research, Hilton Food, Inditherm, International Public Partnerships, Laura Ashley, London Stock Exchange, Electrocomponents, Petropavlovsk, QinetiQ, RPC Group, Tate & Lyle, Signet, RPC.

Friday

UK bank holiday.

Economics Diary

Today

Hometrack housing survey, BBA mortgage approvals for house purchases, US Fed chairman Bernanke speaks.

Tomorrow

CBI reported sales, German retail sales, US new home sales.

Wednesday

Current account data, GDP (fourth quarter, final revision), Total business investment, US pending home sales.

Thursday

GfK consumer confidence, Bank of England credit conditions survey, EU German unemployment change; M3 money supply, US unemployment claims.

Friday

French consumer spending, US consumer sentiment survey.

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