Yahoo Finance Trending tickers: YG Entertainment | TUI | Ocado | British American Tobacco
The latest investor updates on stocks that are trending on Wednesday
YG Entertainment (122870.KQ)
YG Entertainment Inc. has confirmed that all four members of K-Pop group Blackpink have renewed their contracts with the agency amid concerns about the band’s split.
The new contract is believed to be among the most lucrative signed by any music group this year.
Shares surged almost 26% on the back of the news, the biggest daily jump since it went public in 2011.
It comes as Blackpink, a four-member K-pop band that debuted in 2016, is now planning a new album and world tour with YG, the agency said in a statement on Wednesday.
The group became the world’s most popular girl band with their songs setting records on the Billboard charts with hits like Shut Down and Pink Venom. They were also the first K-pop headliner at Coachella.
“We are more than thrilled to finally make an official statement that YG will continue the intimate relationship with Blackpink,” YG Entertainment founder Yang Hyun-Suk said in the statement.
“As the group represents YG and K-pop itself, they will certainly endeavour to shine brilliantly in the global music market.”
TUI (TUI.L)
TUI shares flew as much as 10% higher on Wednesday after it revealed it was considering quitting the London Stock Exchange in favour of a listing in Frankfurt.
The German company, which is one of world's largest travel firms, said some of its shareholders questioned whether its UK listing was "optimal and advantageous" as returns from the UK index lag behind European peers.
Bosses said there had been a “notable liquidity migration from UK to Germany” in the ownership of its shares over the last four years.
The move will require the approval of at least 75% of shareholders at the company’s AGM in February.
The statement said: “In light of the views expressed by shareholders and any further feedback from shareholders, the executive board is currently considering, if an upgrade to a prime standard listing in Frankfurt with MDax inclusion and a delisting from the London Stock Exchange would be in the best interest of shareholders.”
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"TUI is thinking of leaving London…another one bites the dust," Neil Wilson, chief market analyst, at Markets.com, said.
"Tui may also feel like it’s missing out on a better valuation from a single listing and London is no longer the place where a lot of the liquidity can be found. It will surely add to the sense that the City of London is losing its lustre a bit. It’s a sign of decline and underlines the need to revitalise public markets in the UK.
"It’s not just companies moving listings abroad...it’s the huge slate of takeovers that has decimated corners of our markets."
The group owns 400 hotels, 16 cruise ships, five airlines with 130 airplanes and 1,200 travel agencies.
Ocado (OCDO.L)
Ocado saw its shares rise more than 3% on Wednesday, before later paring back some gains, after an upgrade by JP Morgan (JPM) from ‘sell’ to to ‘neutral’.
The investment bank said it sees a brighter outlook for the European internet sector next year, based on improvements in profitability and cash flow, an expected fall in bond yields, and increased M&A activity.
“Having favoured the high margin, low debt (often net cash) names in the online classifieds sector in the past two years, we now turn our sector preference towards names with strong earnings momentum, higher leverage & scope for M&A,” the lender said.
As a result, JP Morgan upgraded the company and increased its price target to 600p from 400p.
It comes as last month Ocado group unveiled a deal to provide automated fulfillment technology for Canadian healthcare provider McKesson, its first deal outside of the grocery sector.
Under the deal, the business will provide its warehouse fulfilment technology and AI-powered software applications for the healthcare firm.
British American Tobacco (BATS.L)
BAT tumbled 8% on the day after warning of low-end revenue and a £25bn ($31.5bn) write-down on its US tobacco brands.
The maker of Lucky Strike, Rothmans and Pall Mall cigarettes said revenue growth for the current year is set to be at the “low end” of its 3% to 5% guidance thanks to pressure on the American market.
It added that combustible volume share had worsened since the end of the first half, and that vape share globally was now seeing material pressure.
However, it did report continued strong volume and revenue growth in new categories, led by Vuse and Velo, with new category contribution expected to be broadly breakeven, two years ahead of the original target.
Broker Jefferies said there is “little to be positive about from this update.”
Management expects sales growth of around 3%, with debt in the business being reduced. As a result, share buybacks will be considered should the deleveraging of the business continue as planned.
it reaffirmed guidance for revenues this year.
“BAT's latest financial update was largely in line with expectations but was not the catalyst needed to begin to reverse the negative sentiment to the company and its very low valuation," Chris Beckett, head of equity research at Quilter Cheviot, said.
"In 2024 management expect low single digit revenue and profit growth. For a stock that looks cheap and is offering a 10% dividend yield this is not awful but it will not change the narrative on the stock.
"The lack of a clear route to a buyback will also weigh. We continue to believe that this valuation is too low particularly compared to Philip Morris, its closest competitor.”
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