FTSE 100 Trades Flat on Caution Ahead of US -2-

0954 GMT - Hostelworld is tracking firmly in line with its long-term growth goals after posting a record 1H performance and reiterating guidance, Shore Capital analysts Katie Cousins and Greg Johnson say in a note. The online hotel-booking platform reported robust booking growth across all territories and a markedly improved net debt of EUR9.3 million, down from December's EUR12 million, the analysts say. Furthermore, investments and the strengthening of its proposition leave it well positioned to gain market share in the structurally-attractive segment of the travel market, they say. "We expect further progress into 2024 and beyond, noting the continued recovery in travel, structural attractions and the ongoing strengthening of the Hostelworld proposition," the analysts say. Shares are up 0.4% at 133.50 pence. ([e-mail])

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Deliveroo Seen Positioning for Consistent Positive Cashflow

0935 GMT - Deliveroo made a sharp upgrade of its 2023 outlook and the group is positioning itself to generate consistent positive cashflow, Interactive Investor Head of Investment Victoria Scholar says in a note. The U.K. food delivery company now expects adjusted Ebitda in the range of GBP60 million to GBP80 million, compared with prior guidance of GBP20 million to GBP50 million, Victoria says. Despite a fall in order numbers, price inflation and increased grocery demand also helped to boost performance, she adds. "While Deliveroo has been dealing with increased labour costs, it has been trying to implement efficiencies in the rider network to help limit the inflationary impact," Scholar says. Shares are up 3.7%. ([e-mail])

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Persimmon's Unpleasant 1H Could Already Be Priced Into Shares

0931 GMT - Persimmon's first-half numbers don't make pleasant reading and the litany of headwinds it is facing show no sign of abating, though it backed guidance and the bad news could already be priced into the shares, Interactive Investor says. The house builder's stock declined 38% over the past year--compared to a 1% rise for the wider FTSE 100--but this release may assuage some fears that business could have been even weaker, with the shares showing a moderate rise at the open, Interactive's head of markets Richard Hunter says in a research note. "However, for the moment the market consensus of the shares as a hold reflects a split of investors not yet willing to commit to the possibility that the worst may be over," Hunter says. Shares are up 3.6% at 1,163.5 pence. ([e-mail])

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Persimmon Gains After Staying on FY Profit Track

0929 GMT - Persimmon shares top the FTSE 100 risers, up 4% after the U.K. home builder said it expected to meet full-year profit expectations despite lower first-half margins. The company's average private weekly sales rate in the six months to June 30 implied a slight slowdown in May and June versus a year earlier, though the average selling price in the last few weeks is said to have stayed robust, Barclays says. "Sales rates in recent weeks have been unsurprisingly weak, but pricing is reportedly holding," Barclays analysts say in a note. Persimmon's top-flight rivals Barratt Developments, Berkeley Group Holdings and Taylor Wimpey also gain. ([e-mail])

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Entain's 1H Was A Mixed Bag

0922 GMT - Entain's half-year performance was a mixed bag, Goodbody says in a note after the Ladbrokes owner posted core earnings for the six month period in line with expectations. "Within the individual country mix, there are some strong performances including Italy and Croatia, however other markets such as Brazil, Germany and the Netherlands are more disappointing," analyst David Brohan writes. The London-listed group swung to a pretax loss on a GBP585 million provision against a potential settlement with the U.K.'s revenue and customs office which is heavier than analysts had expected, but is to be paid monthly over four years. Despite the size of the settlement, it will be positive to have the overhang removed, Brohan adds, reiterating its positive view on Entain's investment case and buy rating.([e-mail])

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08-10-23 0622ET