0919 GMT - WPP's stock valuation continues to significantly understate its attractions as a well-managed, market-leading, global player, Shore Capital's Roddy Davidson says in a research note. The London-based advertising group offers the prospect of strong medium-term earnings per share progression and powerful cash generation, he adds. First-quarter earnings pleasingly showed like-for-like growth across all business sectors on year and all of its top five regions, led by the U.K., where strong spend from consumer packaged goods clients is highlighted, Davidson notes. Shore Capital has a buy rating on the stock. (kyle.morris@dowjones.com)
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Taylor Wimpey Update Shows Market Resilience
0913 GMT - Taylor Wimpey shares drop 0.5% after the U.K. house builder reported a recovery in demand compared with late 2022, but said it remained cautious amid continued macro-economic uncertainty. The company's net private sales rate of 0.75x was still below levels from a year ago, but improved from the second-half 2022 equivalent of 0.48x, fund manager Quilter Cheviot says. "Taylor Wimpey's 1Q statement is another sign of resilience in the house-building market, following a similar tone from Persimmon yesterday," Quilter analyst Oli Creasey writes. (philip.waller@wsj.com)
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St. James's Place Prospects Seen as Remaining Positive
0901 GMT - St. James's Place shares drop 5% after the asset manager reported lower first-quarter gross and net inflows than in the same period a year ago. Still, gross new business matched market expectations, Panmure Gordon says, adding that the company's continuing confidence that conditions will continue to improve through the year underpins consensus expectations for full-year net flows. "St James's Place remains, in our view, the leader in the advice-led market, with much more growth to be achieved, but trades on a [price-earnings ratio] more akin to challenged traditional wealth models," Panmure analyst Rae Maile writes, reiterating the brokerage's buy recommendation. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
04-27-23 0701ET
