Friday, March 21 17:37:10
The ISEQ closed a tough week on a modest high, thanks largely to a rise of just over 3pc for Ryanair's stocks after a string of positive broker reports.
The index rose 20.56 points to 4,914.87.
Ryanair shares rose 23c to E7.45. Ryanair hosted a sell-side site visit to its new corporate headquarters near Dublin Airport yesterday. Presentations were given on the customer programme - brand, digital strategy and service, on network development and traffic management (Ryanair has just launched its winter 2014 London Stansted and Dublin schedules) and on aircraft financing plans and corporate rating (Ryanair received a BBB+ rating from Standard and Poor's, making it the highest rated airline in the world). "With forward bookings (May-July) circa 5pc ahead of the prior year, new airport deals and an improved customer, brand and marketing experience, Ryanair remains very well positioned with its lowest cost/fares model as the 175 Boeing aircraft order is rolled out. Initial trading indications for the summer should be provided at the group's full-year results on May 19th," said Davy in Dublin. "There was a positive site visit to Ryanair, and with fares going up this summer and improved booking, and it's prompted the likes of Deutsche Bank to push them today," Zeg Choudhry, head of equities trading at Northland Capital in London said.
IFG shares rose 4c to E1.70. It is due to release 2013 results on March 27. The company indicated in its November IMS that trends of the first half had continued. For H113, it reported adjusted EPS of 3.55p EPS and for FY13 Goodbody are forecasting 7.2p (8.6p on a Goodbody adjusted basis), from revenues of £77.3m and EBIT of £6m. "We expect a net cash figure of £25m and DPS to remain unchanged at 3.6p," the broker said. "IFG Group is trading on 12x FY15 PE compared to 14x for its closest peers. Given similar growth rates, this looks overly punitive. We value IFG on 14x FY15 PE which generates a price target of E2.05. We remain positive on IFG and expect to see cash accumulate over the forecast period following a period of significant investment, which should lead to further returns to shareholders," Goodbody added. It has a "Buy" rating on the stock.