Tuesday, February 11 12:51:52
The ISEQ rose steadily this morning after yesterday's decline in line with most European bourses.
By 12:45, the index was up 40.70 points to 4,845.52.
European shares climbed to a two-week high, with positive news from companies like BMW and Hexagon boosting sentiment ahead of the U.S. Federal Reserve chair's testimony, which is likely to be dovish.
Smurfit Kappa will report Q413 results tomorrow. Goodbody are forecasting Group EBITDA of E280m compared to consensus expectations for E294m. Europe is expected to increase by 7pc yoy while the Americas, boosted by the Orange County acquisition, is expected to grow strongly (>40pc yoy). "Smurfit Kappa now trades on 6x EV/EBITDA and offers a c.11pc free cash flow yield. We believe Smurfit Kappa's improving returns, strong cash flow and increased balance sheet optionality justify a 7x EV/EBITDA which provides over 30pc upside to the current share price. In addition, the stock is trading at an unwarranted discount to its closest European peers which we expect to correct. We reiterate our BUY recommendation," the broker said. SKG shares rose 11c to E18.11.
Kingspan shares fell 8c to E13.86. In a trading update covering the six months until January 31st, Bellway has reported an increase of over 41pc in housing revenue. This is driven by a 25pc increase in legal completions as well as a 13pc increase in average selling prices, attributed in part to geographic mix. Management notes that the continued strength in the UK housing market is supported by consumer demand and increased access to mortgage finance, largely driven by the Government's "Help to Buy" scheme.