Credit Suisse Downgrades Virgin Money to Neutral

Here’s the summary of CS’s note published today: « We downgrade Virgin Money (VM) to Neutral and reduce our 2018/19E EPS by 6%/22% respectively, after reviewing its business and recently announced digital bank/SME strategy. Our new TP of 305p (previously 330p) implies a valuation of 1.0x 18E TNAV. We prefer OneSavings (OP, TP 460p) and Clydesdale (OP, TP AUD6.00) in terms of the fundamental theses, and relative valuations look reasonable vs VM. »

Broker mentions that it is « cautious on margin outlook » for the company.

« We think there are constraints on deposit and mortgage pricing, and we expect a neutral mix benefit from credit cards (vs c10bps/4bps in FY16/17). Our 18/19E earnings changes reflect weaker margins and growth and, for 19E, £35m higher costs associated with the digital bank », they add in the report.

JPMorgan Expects Double Digit Earnings Growth in 2018 Globally

« Global earnings look set to deliver double digit growth this year, at 12%, the best since 2010. The strength was broad based, with all the key regions contributing, and largely driven by Cyclicals and commodities. As base effects are turning less favorable, the question is whether earnings will remain a support for equities into 2018. »

This is the opening statement and a rather bullish intro to a report published today by JPMorgan’s strategists Mislav Matejka, Emmanuel Cau, Prabhav Bhadani and Aditi Balachandar. Continuer la lecture de « JPMorgan Expects Double Digit Earnings Growth in 2018 Globally »