YG Entertainment (122870.KQ)
YG Entertainment has confirmed that all four members of K-pop group Blackpink have renewed their contracts with the agency amid concerns that the band will disband.
The new contract is believed to be one of the richest signed by a music group this year.
The stock price rose about 26% on the news, the biggest single-day increase since going public in 2011.
This comes as Blackpink, a four-member K-pop band that debuted in 2016, is currently planning a new album and world tour with YG, the agency said in a statement on Wednesday. Announced.
The group set records on the Billboard charts with hits like Shut Down and Pink Venom, becoming the most popular girl band in the world. They were also Coachella’s first K-Pop headliner.
YG Entertainment founder Yang Hyun Suk said in a statement, “We are very happy to finally make an official statement that YG will continue its close relationship with Blackpink.”
“As a group that represents YG and K-Pop itself, we will strive to shine in the global music market.”
Tui (TUI.L)
TUI shares rose as much as 10% on Wednesday after the company said it was considering exiting the London Stock Exchange in favor of a listing in Frankfurt.
The German company, one of the world’s largest travel companies, said some shareholders believe a UK listing would be “optimal and advantageous” as returns from UK indexes lag behind European peers. He said he had doubts.
Executives said there had been a “significant liquidity shift” in ownership of the company’s shares from the UK to Germany over the past four years.
The move will require approval from at least 75% of shareholders at a general meeting in February.
The statement said: “Taking into account the views expressed by shareholders and further feedback from shareholders, the board is currently considering upgrading Frankfurt, including MDax, to Prime Standard listing and delisting from the London Stock Exchange. ”. We will give top priority to the interests of our shareholders. ”
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Neil Wilson, chief market analyst at Markets.com, said: “TUI is thinking of leaving London… another crisis.”
“Mr Tui may also feel that he is missing out on better valuations with a single listing, and that London is no longer a place where much liquidity can be found. There is a sense that the City of London is losing its luster. This is a sign of decline and highlights the need to revitalize the UK public market.
“It’s not just companies moving their listings overseas… it’s the big acquisitions that are decimating this corner of our market.”
The group owns 400 hotels, 16 cruise ships, five airlines with 130 aircraft, and 1,200 travel agencies.
Ocado (OCDO.L)
Ocado’s shares rose more than 3% on Wednesday, but the gains were later pared back slightly after JPMorgan (JPM) upgraded the stock to ‘neutral’ from ‘sell’.
The investment bank said it sees a brighter outlook for the European internet sector next year, given improved profitability and cash flow, expected lower bond yields and increased M&A activity.
“For the past two years, we have favored stocks with high margins and low debt (often net cash) in the online advertising sector, but now we are favoring stocks with strong earnings momentum, high leverage, and high M&A potential. shifting to sector preferences,” the financier said. .
As a result, JP Morgan upgraded the company and raised its price target from 400p to 600p.
This follows Ocado Group’s announcement last month of a deal to provide automated fulfillment technology to Canadian healthcare provider McKesson, its first deal outside the grocery sector.
Under the agreement, the company will offer its warehouse fulfillment technology and AI-powered software applications to healthcare companies.
British American Tobacco (BATS.L)
BAT fell 8% a day after warning of lower-end earnings and a 25 billion pound ($31.5 billion) writedown on U.S. tobacco brands.
The maker of Lucky Strike, Rothmans and Pall Mall cigarettes said sales growth this year is expected to remain at the “lower end” of guidance of 3 to 5 percent, thanks to pressures on the U.S. market.
It further added that the volume share of combustibles has deteriorated since the end of the first half, and the global e-cigarette share is currently under significant pressure.
However, we continue to report strong volume and revenue growth in new categories led by Vuse and Velo, and we expect new category contributions to near breakeven, two years earlier than originally targeted. .
“There is little to be positive about this update,” broker Jefferies said.
Management expects the business to reduce debt and increase sales by approximately 3%. As a result, if business deleveraging continues as planned, share buybacks will be considered.
We reconfirmed our earnings forecast for this year.
Chris Beckett, head of equity research at Quilter Cheviot, said: “While BAT’s latest financials were largely in line with expectations, they did nothing to reverse the negative sentiment and very low valuation of the company.” said.
“Management is forecasting low-single-digit sales and earnings growth in 2024, which isn’t terrible for a stock that looks cheap and offers a 10% dividend yield, but… It doesn’t change my view of stock prices.”
“The lack of a clear path to share buybacks will also weigh on us. We continue to believe this valuation is too low, especially when compared to our closest competitor, Philip Morris. ”
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