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The Week Ahead: Perform set to put on a good show

Laura Chesters
Monday 29 October 2012 01:00 GMT
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Today

Perform Group's update today should come as a pleasing spectacle for shareholders – that is, if they're able to tear themselves away from vegging out in front of the US Open, WTA Tour, NBL Basketball, Russian 1st Division, South American league or one of the many other sports covered by their company. The digital rights business continues to build its portfolio, and analysts at Numis rate it a Buy with a share price target of 509p. Paul Richards said the group's "streaming, data, editorial and statistical products" make it one of his "key picks" this year.

Results/Updates: Rugby Estates, F&C Asset Management, Advent Capital, Lancashire Holdings, Lok'nStore, Tristel.

Tomorrow

Fags aren't good for your health but shares in one of the makers of them could be good for your bank balance, according to scribes at Deutsche Bank. Jonathan Fell admits: "As revealed in the trading update, this will be one of Imperial's strongest-ever years of organic sales growth, and in the EU we expect it to have produced better growth than peers. It is our strong view that Imperial's business is very much more robust than the valuation gives it credit for." He rates the shares a Buy with a price target of 3,000p. Investors are expecting a final dividend, payable in mid-February of 72.9p.

Results/Updates: BP, Stagecoach Group Standard Chartered, Wolfson Microelectronics, Luminar, Endace, Schroders, BNS Telecom, Surfcontrol.

Wednesday

Whether or not you still hate bankers, Investec banking expert Ian Gordon says it is time to buy Barclays shares. Ahead of its update on Wednesday, Mr Gordon gives the shares a price target of 255p and says: "Barclays confirms that it will broadly meet (rather than beat) raised expectations". He points out Barclays trades at a discount to Lloyds, which he rates a Sell. The analyst consensus expects sales of £2.8bn for the third quarter. But Mr Gordon said he is more focused on its cost line. He said: "If Barclays can deliver here, and we increasingly believe that it can, a sustainable cost/net operating income ratio of 60-65 per cent may become a reality. For the survivors, the shareholder economics of investment banking are certainly looking up."

Results/Updates: First Quantum Minerals, Braemar Shipping Services, F&C Asset Management, GlaxoSmithKline, Lamprell, Mondi, Next, Phoenix Group, St James's Place, Standard Life, Kerry Group, Volex.

Thursday

Is it time to dial up BT? Scribes at Liberum Capital recommend buying the shares of the telecoms group, and have given them a price target of 260p ahead of its results on Thursday. Liberum thinks it will give details of a "deteriorating revenue picture" but despite the bad news its analysts think that this is priced into the shares. They expect "the revenue trends to start to improve in the half year and that the improvement will be more visible into next". BT's good cost controls should also be evident in the results.

Results/Updates: Avocet Mining, BG Group, BSkyB, Croda, Glencore, Henderson, Legal & General, Lloyds Banking Group, Royal Dutch Shell, Smith & Nephew, Taylor Wimpey, Icon.

Friday

The defence and aerospace sector has been in focus recently, with BAE Systems' failed merger with EADS, vague speculation that Senior could be a takeover target and Carlyle's waning interest in Chemring. But on Friday it is Meggitt's turn to be in the spotlight. Analysts at Galvan Research regard the current lows of its shares as a "buy-the-dips opportunity" especially taking into account two summer contract wins and the reiteration of full-year guidance in August. They give the shares a target price of 402p.

Results/Updates: Admiral, Direct Line, Millennium & Copthorne Hotels, Wincanton, Royal Bank of Scotland, Biome Technologies.

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