UK Unemployment Rate Expected to Increase to 5% -2-

1121 GMT - Sosandar's update was reassuring given the margin improvement and performance being in line with FY 2023 market expectations despite the challenging backdrop in the sector, Davy Research analysts say in a note. The U.K. online women's fashion brand reported a continued positive momentum through October and November, while its balance sheet benefited from inventory investment and increased use of sea freight, they highlight. "Sosandar, while growing rapidly, appears to have navigated the challenges better than most and delivered a premium gross profit margin," the analysts say. Davy has an outperform rating on the stock. ([e-mail])

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Global Ports Holding's Momentum Is Building, Shore Capital Says

1143 GMT - Global Ports Holding is ready to sail, says house broker Shore Capital analyst Greg Johnson, flagging the company's recovery from the pandemic with most of its cruise ships now sailing and an increasing contribution from new ports. "GPH is emerging from the pandemic with a much higher quality portfolio, greater geographical balance, long-dated concessions and funding secured to take advantage of this structural growth market," the analyst notes. The cruise port concessions signed recently as part of its port network expansion drive are expected to materially add to its revenue base and add significant long-term value to the investment case, he adds. Shares are up 9% at 120.0 pence. ([e-mail])

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Term Premia on Bonds Is Expected to See Upward Pressure in Eurozone in 2023

1159 GMT - Term premia--the compensation investors demand to hold a long-term bond rather than a short-term bond--is likely to come under upward pressure next year, Wellington Management says. The European Central Bank's balance-sheet reduction is likely to outpace both that of the Bank of England and the Federal Reserve in 2023 as the loans linked to its Targeted Longer-Term Refinancing Operations mature and quantitative tightening begins from early 2023, macro strategists Eoin O'Callaghan and John Butler say in a note. "Combined with large issuance plans, this should put more upward pressure on term premia next year," they say. They see Italian sovereign debt vulnerable in this context. "Although the new government has presented a relatively sensible first budget, the risk is skewed to higher borrowing than expected," they say. ([e-mail])

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Hyve Looks Undervalued Given Transformed Business

1303 GMT - Hyve has reported a robust set of fiscal 2022 results, reflecting a full schedule of events outside China and a strong second-half recovery, Investec says. The U.K. events company is a business transformed, with a platform for growth in place, but the valuation remains wrong--with a portfolio focused on developed markets, a leading omnichannel strategy being implemented and operating in a consolidating industry, it looks fundamentally undervalued, Investec analysts Alastair Reid and Ross Broadfoot say in a research note. "If public markets do not recognize this, trade buyers may well take advantage, in our view," the South African brokerage says. Investec retains its buy rating and 125.0 pence price target on Hyve's stock. Shares are up 1.9% at 71.4 pence. ([e-mail])

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Access Intelligence's Budget Pressures Prompts Forecast Cut

1315 GMT - Access Intelligence's update indicates there are marketing budget pressures ahead, despite delivering a robust pipeline and 97% revenue growth, finnCap analyst Andrew Darley says in a research note as shares fall 27%. The London-listed information-and-marketing company's annual recurring revenue expectations have been affected by challenges in North America, contract reviews in APAC and a cautious approach to contract conversion, Darley says. Given the update, FY 2023 revenue forecast is cut to GBP68.9 million from GBP79 million and Ebitda to GBP7.0 million from GBP8.9 million, Darley says. "Cash generation is expected to preserve a robust balance sheet, with cash of GBP3.5 million and GBP5.0 million at FY 2023 and FY 2024, respectively," he says. ([e-mail])

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(END) Dow Jones Newswires

12-13-22 0838ET