Royal Mail (RMG) shares ticked up 7.25% to 589.9p as analysts tell investors to ‘buy’
The stock has gained value today after a JP Morgan analyst told investors to “just buy” as the investment bank increased its target price for the FTSE 250 firm to 801p from 685p.
In a note released on Monday, JP Morgan analysts retained its ‘overweight’ rating and said that RMG’s results for the full year ending 28 March 2021, which were published last week, had highlighted a ‘sharply better price/mix and confirmation of material cost savings.’
Analysts said they expect a ‘sharp increase’ in profits in 1H21 to more than offset a potential drop in profits in 2H21. In addition, the investment bank also increased its forecasts for the company’s operating profit by around 12% for FY22, driven by ‘stronger parcel revenue’.
Norman Broadbent (NBB) shares soared 20.77% to 7.85p as the stock sees light relief
The stock saw some light relief today after it was trading 15.38% lower on Monday following the publication of the company’s final results for the year ended 31 December 2020 in which it highlighted ‘good momentum’ as well as its plans for further growth going forward.
However, revenue fell by 31.9% to £7.81m as a result of the pandemic while net fee income decreased by c.18% which the firm said was ‘largely mitigated by quick and decisive cost control measures’. Meanwhile, EBITDA reduced from £238,000 in 2019 to £69,000 in 2020.
“The early and very decisive actions taken by us, combined with our broader portfolio of services and collaborative and innovative culture, meant we were better placed to respond to these challenges than others,” said Mike Brennan, CEO of Norman Broadbent Group.
eEnergy (EAAS) shares jumped 20.51% to 24p after shedding nearly 15% in value
Despite having no news out this morning, shares in the group, which operates as an "Energy Efficiency-as-a-Service" business in the UK and Ireland, jumped this afternoon as the stock saw some relief after having shed around 14.5% in value since the beginning of the month.
Last month, the company made a £0.126 million investment into eEnergy Insights, a newly formed specialist smart metering measurement equipment and analytics business.
In line with its stated strategy, eEnergy stated that working with eEnergy Insights will allow it to “offer its customers validation of energy savings delivered on their energy efficiency projects and facilitate additional efficiencies through a Metering-as-a-Service proposition.”
In March 2021, EEAS said it had delivered a strong first half outturn on organic and total revenue growth metrics and said it continues to see “strong organic growth” from higher demand in the market for energy efficiency solutions, particularly, for its EEaaS proposition.
Agriterra (AGTA) shares rose 16.15% to 4.875p as grain division sees sale boost
The African-focused agricultural company released a trading update last week in which it stated that its grain division sales volume had increased by 25% in FY20 to 25,389 tonnes.
Agriterra said this has been driven by the group’s ability to maintain its stronghold in the central region of Mozambique and the continued commitment to cater to its clients' needs.
The group said the shift to direct delivery has ‘begun paying off,’ as monthly sales increased from a mere 1 ton per month in FY2020 to a high of 20 tons in February 2021. It said it continues to develop this offering and expects to realise higher margins during FY22.
Greencore Group (GNC) shares fell 16.04% to 143.35p as revenue falls by 19%
Shares in the convenience food manufacturer fell after it posted a revenue decline of 19% to £577.1m for the 26 weeks ending 26 March 2021, which it said was driven by the reduction in consumer mobility as a result of tiered restrictions and lockdowns across the UK.
Commenting on the results, CEO, Patrick Coveney described the period as “challenging” but noted that the consistent build in revenues since early March as lockdown measures have eased and COVID-19 cases have fallen gives the company “real cause for optimism.”
The company said its focus looking ahead is “on rebuilding revenue, profitability and cash flow momentum as the UK economy reopens.” It added that its recent business wins are a great endorsement of its continuing relevance in the UK convenience food landscape.
While the ongoing uncertainty ‘continues to make FY21 forecasting difficult, with limited visibility of Q4 demand patterns’, the firm said a continued reopening of the UK in line with the current roadmap and a consequential rebuild of group revenue ‘would be expected to generate a FY21 Adjusted Operating Profit outturn above FY20 levels.’ The company added that net debt is also expected to reduce further from 1H21 levels under this scenario.