UK Housebuilders No Longer Look Over-Sold -2-

1231 GMT - Everyman Media posted a solid end to 2022, particularly given the challenging macroeconomic backdrop and inflationary operating cost environment, Canaccord Genuity says. The cinema company's near-term growth trajectory has been tempered by expected utility cost increases and a slippage in phasing of planned openings--which are largely beyond management's control--but performance across 2023 to date has been encouraging, Canaccord analyst Mark Photiades says in a research note. "We continue to believe that Everyman's premium brand is strong and differentiated which, coupled with a robust balance sheet, reinforces our belief that the group is well positioned for future growth," the bank says. Canaccord retains its buy rating, but cuts its price target on the stock to 200 pence from 245 pence, reflecting a moderation in near-term forecasts. Shares are up 7.4% at 92.4 pence. ([e-mail])

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Fuller Smith & Turner's Recovery Challenges Go Beyond Train Strikes, Prompt Downgrades

1234 GMT - Fuller Smith & Turner's like-for-like sales fell by 5% versus prepandemic levels in the four-week Christmas and New Year period, with the company blaming train strikers for its performance, Peel Hunt analysts Douglas Jack and Ivor Jones say in a note. Train volumes have remained consistently down more than 10% over the past two to three years, reflecting a behavioral change, and cost inflation is high--some of which, like labor, won't reverse--the analysts say. They say that if the train strikes were the only sales challenge, the company's recovery would still be long, and downgrade their 2023 pretax profit forecasts by around 37% to GBP10.8 million, and by around 11% for 2024 to GBP17.2 million. ([e-mail])

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Fuller's Takes Profit Hit From UK Rail Strikes

1259 GMT - Shares in Fuller Smith & Turner drop 1% after the U.K. pub group blamed U.K. rail strikes for a profit warning. In a trading update for the 43 weeks to Jan. 21, the company forecast full-year earnings below market expectations, saying strike disruption had affected its reported sales and earnings, though demand from customers remained good. While Fuller flagged the potential strike impact at its interim results, it was significantly worse than feared, with GBP4 million of lost sales, Liberum Capital says. "Challenging trading conditions remain, with cost inflation and higher interest rates squeezing profits alongside further strikes," Liberum analysts say in a note, keeping their hold recommendation but cutting their target price to 485 pence from 550 pence. ([e-mail])

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01-23-23 0835ET