FTSE 100 Ends Higher Fueled by Energy Stocks -2-

1304 GMT - easyJet's update is reassuring despite a turbulent summer which saw it cancel almost 2,000 flights, as it released some exciting medium-term targets, Begbies Traynor analyst Julie Palmer says in a note. The budget airline looks to be in fine form as it expects group profit to hit GBP1 billion by 2026, orders 157 Airbus airplanes worth $20 billion, and returns to dividend payments at the full-year, Palmer says. "In a world where holidays abroad continue to be a priority for families, despite a persistent cost-of-living crisis, it's the budget airlines who are set to benefit if they can continue to keep costs down and air fares competitive," Palmer says. ([e-mail])

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Wise PLC's 2Q Trends Point To Long-Term Strong Franchise Build

1303 GMT - Wise PLC's second-quarter trends back its long-term continued strong franchise build, Numis analysts say in a research note. After a better quarterly performance compared with views and the previous year, the money transfer company lifted its fiscal 2024 revenue growth guidance, as expected. "Wise will be hard to match in terms of price, speed and convenience, making it likely that the group will continue to grow its share of the very large global personal and SME cross-border money transfer market," analysts write. Numis rates the stock buy with a 900 pence target price. Shares rose as much as 4.8% at market open and traded up 1.75% at 732.8 pence by early afternoon in London. ([e-mail])

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Wise PLC's FY 2024 Upgrade Is Cheered But Slowing Growth Remains A Concern

1230 GMT - Wise PLC's better take rate and gross margin comments are seen as broadly positive, Citi analysts write in a research note after the London-listed money-transfer company raised its upgraded revenue growth guidance for fiscal 2024, in line with consensus expectations. Wise posted in-line volumes for its second quarter and better-than-expected revenue driven by net interest income. "We however, more broadly remain concerned around the slowing growth in FY25-26 from declining volume per customer and a reversal of interest income benefit," they add. Citi rates the stock sell. Shares, which have rallied since the start of the month, are up 1.7% at 732.2 pence, and have gained 30% year to date. ([e-mail])

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Centamin Should Meet Full-Year Production View Despite Third-Quarter Snag

1226 GMT - Centamin should still meet its full-year production target despite third-quarter output falling below estimates, Berenberg analysts Richard Hatch and William Dalby write in a research note. The gold miner will, however, need a strong fourth quarter to do so, and Berenberg estimates a fourth-quarter output of around 128,000 ounces is needed--which it notes has been reached before. The analysts also highlight the new, long-term costs guidance for the Sukari gold mine in Egypt, which is below the magic $1,000-an-ounce level, noting it is significantly better than Berenberg estimated. The German brokerage keeps a buy rating on the stock, with a 147-pence price target. Shares are up 2.6% at 84.50 pence. ([e-mail])

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European Apparel Aggregators Seen Hit By Sales Drop, Mark-Down Trend

1151 GMT - European apparel aggregators aren't expected to outperform the market, Goldman Sachs says in a research note. "Warmer European weather patterns in September drove weakness in apparel sales momentum which continues to have an adverse impact on October trading as consumers defer purchasing autumn/winter collections", analysts write. Sales trend for London-listed ASOS and Boohoo are still falling by double-digits and mark-down activity remains elevated. GS cuts its ratings to sell from hold and its target prices by 22%, noting the companies' loss of online market share to multi-channel retailers, such as Shein UK. The revenue performance of buy-rated German peers About You and Zalando has been more stable but they have also seen modest on-year sales declines, analysts add. ([e-mail])

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European Stocks Rally After Asia Gains; US Set to Rise

1144 GMT - European stocks rise after upbeat Asia trading and ahead of an expected higher U.S. open. The Stoxx Europe 600 and FTSE 100 gain 0.8% and the DAX and CAC 40 advance 0.5%, with oil and defense stocks gaining. Brent crude rises 1.2% to $86.84 a barrel. IG futures data show the Dow opening at 33925, versus Wednesday's close of 33804. Australian and Chinese stocks made modest gains, but markets in Hong Kong, Japan and South Korea rose more than 1%. "A litany of dovish comments from Fed speakers this week on the need for caution on further rate hikes has helped to avoid any resumption of September's falls, but nerves are on the rise ahead of today's key CPI figures," IG analysts write. ([e-mail])

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easyJet's Short-Term Outlook Cloudy Despite Strong 4Q

1139 GMT - easyJet's short-term outlook is unclear and looks slightly worse than previously forecast, Barclays says. In a trading update, the European budget carrier said it was on track to hit financial targets for the year to the end of September following strong fourth-quarter trading. Still, easyJet's unit-revenue guidance for the first quarter of 2023-24 is rather cloudy and not improving relative to forecasts made in 3Q, Barclays says. In 3Q, the company also pointed to unit costs ex-fuel continuing to decline, compared to the current "slight reduction" forecast, the bank adds. "The near-term guidance has not improved and has actually, if you focus on fine details, marginally weakened," Barclays analysts say in a note. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

10-12-23 1230ET