Equities Update: Tesla, Ryanair, Kingfisher etc

Smiths Group continues dramatic recovery 

Mark Crouch, analyst at investment platform eToro, says: “Smith Group’s run of positive momentum has shown no sign of letting up in this morning’s latest trading update. The London based engineering firm reported that Q3 organic revenues advanced further and so has reaffirmed guidance as margins at the company continue to expand.

“The engineering business has rebounded dramatically since the doldrums experienced during the pandemic with shares rising well over 100%.

“Following former CEO Paul Keel’s sudden departure, new CEO Roland Carter takes up the mantle with the company in a strong position, making strides in aerospace and security markets in particular, while a record order book continues to bolster earnings.

“All this means the engineering firm has been able to crank up shareholder returns. A £100m share buyback scheme that was announced in March is well underway and investors will also be receiving an increased dividend that looks set to rise further.”

Kingfisher sales slip but firm maintains profit guidance

Adam Vettese, analyst at investment platform eToro, says: “It’s a much tougher market these days for Kingfisher in comparison to the pandemic DIY boom. The Screwfix and B&Q parent company reaped the benefits of consumers stuck at home with a few extra pounds in their pocket and now we have the opposite in that people are returning to the office and feeling the pinch in terms of cost of living. Full year profit outlook has been maintained so it may not be time to panic just yet but there are indications of tougher trading conditions in other key markets such as France.

“As the macroeconomic situation begins to ease and consumers start to see some relief in terms of high interest rates and high inflation, conditions should start to improve for retailers such as Kingfisher as a home improvement budget is back on the table for many households.”

Record number of Tesla retail investors turn out to back Musk pay deal following firm’s rallying cry

With Tesla shareholders set to vote next month on Elon Musk’s much-discussed $56 billion pay package, investment platform eToro has reported over 80% of retail investors have so far voted in favour of the award.

Despite Musk raising concerns over the ability of Tesla’s retail investors to vote on shareholder proposals, investment platform eToro has revealed that Tesla’s upcoming AGM has already seen votes cast on 24% of Tesla shares held on the platform, the highest-ever turnout with over three weeks remaining.

Tesla is the most popular share on the platform, and the proxy voting turnout is already 10 times higher than for comparable AGMs for the likes of Microsoft (1.7%) and Apple (1.9%), demonstrating high levels of engagement from the retail investor community following Musk’s encouragement that investors engage with the proposals.

Record profits for Ryanair heading into busy summer season

Adam Vettese, analyst at investment platform eToro, says: “The pandemic hangover seems to be truly over for Ryanair as the low cost carrier posted record profit of €1.95bn. A milder winter and early Easter helped boost the slow season as demand for travel shows no signs of letting up. The name of the game for Ryanair is low prices and an easing of cost pressures will not only take the strain off internally, but also see more consumers with more disposable cash topping up the holiday pot ready to book a cut-price getaway.

“The firm has been a little cagey in terms of affirming forward guidance amid lingering potential issues such as aircraft supply and macroeconomic pressure. Despite this, a chunky share buyback of €700m has been announced which could well be a catalyst to see shares start to creep back up towards the record high level achieved earlier this year.”