1058 GMT - Harbour Energy has shown a robust operational delivery and free-cash flow generation on top of an already strong balance sheet, but the main question for investors is the strategic direction of the oil-and-gas producer, Jefferies analysts Mark Wilson and Ruben Dewa write in a research note. With the company's U.K. focus in question post windfall-taxes and as international mergers and acquisitions are yet to be realized, investors will be looking for updates on the company's strategic direction, the analysts say. "Further commitment to share buybacks, given stock valuation, would be one alternative if value-accretive M&A is slow to appear," the analysts say. Jefferies rates the stock at buy and lowers its price target to 340 pence from 360 pence. (christian.moess@wsj.com)
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Generative AI Brings Threats, Opportunities in Cybersecurity, Citi Says
1044 GMT - Generative artificial-intelligence tools can empower hackers to conduct more sophisticated attacks while elevating cybersecurity workers' capabilities to stave off threats, Citi analysts write in a note to clients. The technology could assist hackers in driving attack speed and strength, for example by customizing phishing attacks, building more sophisticated malware, creating deepfake data, etc, the analysts note. However, AI can eliminate tedious and manual tasks for cybersecurity workers, streamlining threat intelligence, they point out. "We view Generative AI as a force multiplier and a positive for cyber vendors as it amplifies the ability of the masses to make proper threat assessments in a timely manner," the analysts say. (mauro.orru@wsj.com; @MauroOrru94)
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Knights Group's Positive Momentum Bodes Well For Recovery
1032 GMT - Knights Group Holding looks well positioned for recovery, Numis says in a note after the U.K. legal and professional services business posted robust results for fiscal 2023 given challenging market conditions and backed its fiscal 2024 outlook. "In our view, a forward [price-to-earnings] of just 3x places the risk/reward firmly on the upside, and we reiterate our Buy recommendation," analysts write, adding the business' positive momentum isn't reflected in the current valuation. Numis cuts its price target on the stock to 210 pence from 380 pence, in line with the average for its legal services peers. Shares rise 13.8% at 72.6 pence.(elena.vardon@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
07-10-23 1208ET
