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30 Apr, 2021 16:42

Broker tips: Standard Chartered, Howden Joinery

standard chartered, stanchart

Berenberg raised its target price on financial services company Standard Chartered from 550.0p to 630.0p on Friday, stating the firm was now "catching up" with the rest of the pack.

Berenberg said that as well as benefiting from faster-growing markets than its peers, Standard Chartered was also "a key beneficiary" of strengthening global activity.

"Yet, despite this, the bank's share price had risen by just 7% year-to-date prior to its recent Q1 2021 results," noted Berenberg.

As well as providing near-term support, Berenberg said Standard Chartered's first-quarter results increased its confidence in the bank's future growth.

"As a result, we raise our already above-consensus revenue estimates by 1-2%. Trading on just 7.8x our FY 2022E EPS (a circa 20% discount to the sector), we believe Standard Chartered remains undervalued," concluded the German bank, which also reiterated its 'buy' rating on the stock.

Analysts at Canaccord Genuity hiked their target price on kitchen supplier Howden Joinery from 735.0p to 775.0p on Friday, stating the group had "started the year well".

Canaccord noted that Howden had experienced "good" sales growth throughout the first quarter of its trading year, helped in part by positive trends in pricing and some competitors dealing with more disruption to their business models, with underlying demand trends remaining good as the market continues to see "a sound recovery".

While Canaccord acknowledged that cost inflation was "a growing issue", it appeared to the analysts that Howden was "incrementally more positive" around gross margins as pricing was "promising".

"It appears to be on track to deliver a very good first-half performance but, as ever, the more important second-half trading period will be key to the outcome for the full year," said Canaccord, which also reiterated its 'hold' rating on the stock.

In the medium term, the Canadian bank expects Howden to drive growth through new depot openings and a better performance from older refurbished depots, leading it to increase profit estimates for the firm in 2021 as its confidence around gross margins and sales improves.


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Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.