Interactive Investor

The week ahead: Ryanair, Tate & Lyle, Micro Focus International

Monday 25 May

Bank holiday - London market closed

Economic news

The Nationwide house price index for May will be released this week, with Investec expecting the positive momentum marked in the RICS report translating to another month-to-month increase.

"Following the robust 1% April rise, we are pencilling in a more moderate 0.3% rise this time. On the year, that would see house prices stand 4.8% higher," says Investec analyst Victoria Clarke.

Trading statements

Secure Property Development & Investment, Iofina.

AGM/EGM

Public Joint Stock Co. Severstal, Jiasen International Holdings.

Tuesday 26 May

Investec expects "strong" full-year results from budget carrier Ryanair on Tuesday, although hints at potential for yield turbulence.

"A continuation of the carriers' commercial repositioning should see high profile primary airports added to the route map in 2016, with recent media reports suggesting Paris CDG as a potential Ryanair destination," says analyst Robert Murphy.

"Volume momentum continues to build and we believe the carrier is increasingly well positioned to grow market share."

Murphy forecasts net income to jump 66% year-on-year to €847 million, adjusted earnings per share (EPS) of 62 euro cents, up 66% year-on-year.

However, given management commentary at Ryanair's Q3 update, and following on from easyJet's 12 May H2 guidance for Q3 yields to be down 4%, Murphy sees risk to the downside in terms of yield outlook, but the stock remains a 'buy'.

Investec's 1,300 euro cents price target suggests 22% upside to the current price.

Interactive Investor Summer Portfolio constituent Micro Focus International should publish a "short and sweet" update on Tuesday.

Panmure Gordon analyst George O'Connor says the software and information firm already announced that finals will be in line with pro-forma full-year guidance. "The currency impact is the US$ strengthening against key currencies. Micro Focus is on track to reduce net debt/EBITDA ratio to below 2.5x ahead of the original planned date of November 2016," adds the broker.

For now, he retains his 'hold' recommendation and 1,293p target price.

Trading statements

Minds + Machines Group Limited, Micro Focus International.

AGM/EGM

i-Pay Group, Nostrum Oil & Gas, Epwin Group, Cineworld Group.

Wednesday 27 May

Trading statements

Urban&Civic, Fusionex International, Brewin Dolphin Holdings, Caledonia Investments, McKay Securities, Scapa Group, Wizz Air Holdings, Card Factory.

AGM/EGM

Standard Life Investment Property Inc Trust, Nahl Group, AcenciA Debt Strategies.

Thursday 28 May

Sugar and sweeteners giant Tate & Lyle reports full-year results on Thursday, bringing to a close what will have been a "very tough year", according to Deutsche Bank.

US supply chain issues significantly reduced profits and the firm's star franchise, Sucralose, will have lost nearly all its profits.

However, Deutsche sees light at the end of the tunnel in the form of a "fast accelerating new product franchise, a more global business, new IT infrastructure and some major plant investments".

Look for full-year profit before tax of £206 million, EPS of 34.34p and a dividend of 28p a share.

With recovery prospects, an improving fundamental growth profile and a healthy yield, Deutsche says 'buy' with a 750p price target.

Trading statements

Public Power Corp, Signet Jewelers, Alpha Bank, Tate & Lyle, PayPoint, Gable Holdings, Helical Bar, Infinis, Porta Communications, IG Group Holdings, Kingfisher.

AGM/EGM

Trap Oil Group, Metminco, Powerflute Oyj, NetPlay TV, Kenmare Resources, Allied Mind, Fair Oaks Income Fund Limited, Electric Word, F&C Commercial Property Tst, Galasys, Icg-longbow Snr Sec Uk Prp Debt Inv.

Friday 29 May

Economic news

May's GfK consumer confidence reading will be revealed at the end the week. The indicator held steady at +4 last month – its highest reading since September 2002.

A key question for the May report is whether the General Election had any discernible impact, says Investec's Clarke.

"Having looked back at the 2010 Election, we can't say we can identify any effect, with consumer confidence notching down in the election month but with that move being part of a declining trend," she adds.

Her suspicion is that the election would have little to no effect on the indicator, pencilling in another reading at +4.

The second estimate to Q1 GDP will also be released on Friday, with Investec forecasting an upward revision to GDP to +0.4% from an initial reading of +0.3%.

It suspects the first estimate understated the true pace of activity and cites the Bank of England as being similarly wary and "openly suggesting that GDP will be revised upwards".

Trading statements

Optibiotix Health

AGM/EGM

Tekcapital, Flying Brands, Leyshon Resources, Richland Resources.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Related Categories

    UK shares
    Consumer goods and services
    Industrials
    Infrastructure