Welcome to the world of investment opportunities! In this article, we delve into the insights provided by top analysts at Goldman Sachs, Citi, Barclays, and Berenberg. Join me, Emma Baker, as we explore the coverage on M&G, B&M, Frasers Group, and Frontier Developments. Discover attractive growth prospects, resilient consumer landscape, European expansion, and more. Let's dive in!
M&G: Attractive Growth and Valuation
Discover the investment potential of M&G as analysts at Goldman Sachs initiate coverage with a 'buy' rating.
Goldman Sachs analysts have recently initiated coverage on investment manager M&G, giving it a 'buy' rating. They are optimistic about M&G's attractive growth prospects, capital returns, and valuation.
M&G operates in three main segments - Asset Management, M&G Wealth, and Heritage. These segments provide attractive synergies and contribute to the company's overall success.
With a large balance sheet, M&G has the ability to seed assets and generate sufficient capital to cover dividends and reduce debt over time. This positions the company for long-term growth and profitability.
B&M: Benefiting from a Resilient Consumer Landscape
Citi's upgraded rating on B&M highlights its potential in a resilient consumer landscape.
Citi has upgraded its rating on discount retailer B&M from 'neutral' to 'buy' based on their analysis of the consumer landscape. They believe that B&M is well-positioned to benefit from a resilient consumer environment.
According to Citi's research, the UK is expected to narrowly avoid a 'consumer recession' based on their Household Available Cashflow (HAC) analysis. They anticipate a growth of 1.8% in HAC by 2024.
B&M's value-led proposition and its space runway in a category with a 10-year trailing CAGR of 10% make it an attractive investment. With a new target price of 640p, Citi sees significant potential for growth in the company.
Frasers Group: Poised for European Expansion
Barclays' coverage of Frasers Group highlights its potential for expansion in the European market.
Barclays has initiated coverage of Frasers Group with an 'overweight' rating and a price target of 1,060p. They believe that Frasers Group is well-positioned for expansion in the European market.
Key partners like Nike and Adidas have shown support for Frasers Group, indicating the company's potential for growth. Additionally, Frasers Group's nascent financial services division presents an exciting opportunity for further development.
Frontier Developments: Navigating Challenges in the Gaming Industry
Berenberg lowers target price on Frontier Developments due to disappointing sales, but highlights potential catalysts.
Berenberg has lowered their target price on video games developer Frontier Developments from 210.0p to 170.0p. This adjustment is a result of disappointing sales of its Realms of Ruin title, which led to a downgrade in full-year revenue guidance.
While Frontier Developments faces tough trading conditions in the gaming industry, Berenberg acknowledges potential catalysts in the next 12 months. They expect the company to navigate these challenges and capitalize on future opportunities.