Per today’s report:
« Floated in early 2017, Neinor is the second largest Spanish homebuilder, focusing on first time buyers in the medium to medium-high price range. The group will ramp up production on its E1.5bn (12k unit) landbank bought early in the cycle on 20% EBIT margin and 15% ROCE. However we expect Neinor to complete future land acquisitions at 15% EBIT margin. DBe a 10% 2020 FCF/sales at steady-state which, based on a 100% pay-out, drives a 2021 div yield of 11%. Neinor may choose to funnel cash back into the land bank to drive further earnings growth above mgmt and consensus run-rate forecasts. Trading on 1.3x 2020 P/NTAV, we believe this yield/growth opportunity leveraged to the early stages of recovery in the Spanish housing market, remains underestimated and initiate with a BUY. »
Hammerson announced a recommended offer for Intu Properties, the exact same day Exane BNP Paribas’s Michael Burt says « Hammerson is the most obvious acquirer for Intu » in a report date Dec 6 (at 6:18am), yet adding M&A is not an option. Continuer la lecture de « Exane Issues Undeperform Note on Intu Properties But Says Hammerson Could Buy It… The Day the Deal is Announced »
Here are 3 slides from the latest « Where to Invest Now » published by Goldman Sachs’s David J Kostin and team. There sum up his views on US equity market going into 2018 and the most interesting one is the following, because it helps understand what an « exuberant » market would look like, if history was to repeat itself.
Continuer la lecture de « What Irrational Exuberance Might Look Like… »
So far, 2017 returns have been good for US equity investors. 2018 won’t repeat that, according to Morgan Stanley’s strategists in a report published today. Continuer la lecture de « Expect More Volatility in the US Equity Market – Morgan Stanley »