Sterling to Fall Versus Euro Later in 2023, ING -2-

1138 GMT - Savills' 1H saw a large profit fall on year, prompting Numis to cut its 2023 and 2024 pretax profit forecasts by 11% and 9% to GBP120 million and GBP150 million, respectively, analysts say. The international real-estate advisor's markets should however progressively improve in 2H and 2024, and given Savills' decision to maintain strength through the Covid-19 pandemic, it should benefit from market share gains and operational gearing once activity improves, Numis analysts say in a note. "We therefore maintain our positive stance and would argue that the diversification of Savills by end market and geography and its ultimate recovery potential are not captured in the [share price]," the U.K. brokerage says. Numis retains its buy rating and 1,375 pence price target on the stock. ([e-mail])

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European Stocks Rise Ahead of US Inflation Data

1113 GMT - European stocks mostly rise and Wall Street looks set to open higher ahead of U.S. inflation data due later. The Stoxx Europe 600 and DAX gain 0.5% and the CAC rallies about 1%, though the FTSE 100 trades flat, with property and luxury-goods stocks among the biggest pan-European risers. Brent crude drops 0.1% to $87.44 a barrel. Asia stocks traded mixed and IG futures data show the Dow opening at 35288, versus Wednesday's close of 35123. "Attention turns firmly to today's U.S. CPI," IG analysts write. "A weaker figure might be enough to see U.S. stocks rebound, while a renewed strong pace of price growth could set off fresh worries about more Fed rate hikes that might push U.S. indices lower." ([e-mail])

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Spirax-Sarco Suffers From Biopharm, Semiconductor Weakness

1019 GMT - Spirax-Sarco Engineering's 1H earnings miss and full-year outlook imply a mid-single digit consensus downgrade on the weakness in biopharm and semiconductor segment, with consensus for 2024 set to decline too, RBC analyst Mark Fielding says in a note. Outlook for the year was lowered, with organic growth of 0% to 4% offset by a 2% to 2.5% foreign-exchange headwind, and year-on-year margins are seen 100 to 200 basis points lower as lower demand in biopharm and semiconductor hurts the company, the analysts say. "Spirax is in our view a high-quality business, but our underperform rating reflects in part a view that it is now more cyclical than in the past and these results are highlighting that in our view," RBC says. Shares are down 5.9% at 10,200 pence. ([e-mail])

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Watches of Switzerland's US Performance Seen as Well Ahead of Views

1008 GMT - Watches of Switzerland reported a slightly better-than-expected 1Q performance while U.S. performance was impressive, Shore Capital analysts Eleonora Dani and Clive Black say in a note. The luxury-watch retailer's 1Q sales fell 2% compared with consensus estimate of a 3.2% drop, they highlight. The group's U.S. progress grew 10%, well ahead of consensus of 2.4%, the analysts say. "This moderation in sales performance was observed against a backdrop of ongoing strategic expansion, including the establishment of a new multi-brand showroom at American Dream, New Jersey, and the expansion and refurbishment of various luxury and mono-brand boutiques," they add. ([e-mail])

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(END) Dow Jones Newswires

08-10-23 0824ET