Stocks on the move: IAG, Rheinmetall up, Netcompany plunges 20%
Its low-cost rival EasyJet reported a 47% rise in passenger numbers for the final quarter of 2022 and said it would likely exceed earnings expectations for the full year. On Tuesday, Liberum analyst Gerald Khoo raised his target price for IAG, which has risen more than 33% in the year to date.
Arms manufacturer Rheinmetall also climbed on news that the German government is set to send its Leopard 2 tanks to Ukraine, with a 3% gain taking the stock to a record high.
At the bottom of the table, Danish IT consultancy Netcompany shed more than 20% despite reporting higher revenue and earnings, as it warned of a challenging environment which it said would affect future growth and earnings.
European markets were choppy overall, with the Stoxx 600 down 0.1% at 8:30 a.m. London time.
— Jenni Reid
Morgan Stanley reveals its 8 favorite stocks ahead of Europe’s earnings season
Morgan Stanley has named eight stocks to buy ahead of a hotly anticipated earnings season in Europe.
Stocks in the region have risen this year on the first signs of moderating inflation across Europe. Nonetheless, the impact of sluggish growth and the war in Ukraine remains key concerns for investors.
— Ganesh Rao
Rheinmetall shares hit all-time high
Shares in German arms firm Rheinmetall rose 2.5% in early trade, hitting a fresh record high, according to Reuters.
The company manufactures the Leopard 2 tanks that Germany is believed to be on the cusp of agreeing to send to Ukraine.
On Tuesday, the company hiked its sales expectations for 2025 and said it anticipates higher demand for weapons due to the Ukraine war.
— Jenni Reid
EasyJet reports passenger growth, forecasts 2023 beating expectations
The company’s shares were up 7% in early trade.
Its pre-tax losses for the first quarter narrowed, from £213 million ($262 million) to £133 million, and it anticipates a loss in the first half.
“Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, easyJet anticipates beating the current market profit expectations for FY23,” its release said.
— Jenni Reid
U.S. and Germany expected to approve tanks for Ukraine
The U.S. and Germany are believed to be on the cusp of agreeing to deliver modern battle tanks to Ukraine after months of indecision and debate over the issue.
Reports late Tuesday suggested that German Chancellor Olaf Scholz was ready to agree to sending a number of Leopard 2 tanks to Ukraine, and to allow allies to do the same with their own German-made tanks.
European markets: Here are the opening calls
European markets are heading for a negative open Wednesday.
The U.K.’s FTSE 100 index is expected to open 2 points lower at 7,765, Germany’s DAX 28 points lower at 15,070, France’s CAC down 8 points at 7,040 and Italy’s FTSE MIB 65 points lower at 25,888, according to data from IG.
There are no major earnings releases today, but market participants will be keeping an eye on the latest Ifo business climate survey from Germany.
— Holly Ellyatt
CNBC Pro: Analysts like this indie game developer — with one bank saying it could soar over 200%
Shares of an indie video game developer are set to rise by more than 200%, according to Berenberg, which said the company provided a “very encouraging” 2023 outlook.
The investment bank isn’t the only one that likes the developer — although it’s the most bullish. The consensus price target of six analysts covering the stock indicates a potential upside of over 70%, according to FactSet data. All but one have a buy rating on the company’s shares.
— Ganesh Rao