Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

<p>WPP’s capital markets day (CMD) focused on the combination of creativity and AI at scale and how these can be leveraged to boost clients’ businesses. Outline Q423 performance figures were given, along with updated forward guidance, including on restructuring costs and potential payback. We expect market expectations to be broadly unchanged. The overarching narrative of consolidation and simplification, common data platforms and standardised reporting, is coherent and supports the projected margin expansion. To be really convincing, though, top-line growth needs to exceed the 3% indicated, which depends on better performances in both Media and Creative. The rating remains undemanding.</p>

WPP’s capital markets day (CMD) focused on the combination of creativity and AI at scale and how these can be leveraged to boost clients’ businesses. Outline Q423 performance figures were given, along with updated forward guidance, including on restructuring costs and potential payback. We expect market expectations to be broadly unchanged. The overarching narrative of consolidation and simplification, common data platforms and standardised reporting, is coherent and supports the projected margin expansion. To be really convincing, though, top-line growth needs to exceed the 3% indicated, which depends on better performances in both Media and Creative. The rating remains undemanding.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

EURO STOXX 50 Price EUR / Technical Analysis

<ul>
<li>It appears the recent pullback is over, and we could see the MSCI ACWI (ACWI-US) test YTD highs at $93. We still expect $93 to cap upside in 2023.</li>
<li>Overweight Europe/UK and non-U.S., we are buyers on pullbacks as long as FTSE 100 is above 7700, STOXX Europe 50 is above 3800, and EURO STOXX 50 is above 4000.</li>
<li>As long as these support levels are holding, we are constructive from a price perspective</li>
</ul>


It appears the recent pullback is over, and we could see the MSCI ACWI (ACWI-US) test YTD highs at $93. We still expect $93 to cap upside in 2023.
Overweight Europe/UK and non-U.S., we are buyers on pullbacks as long as FTSE 100 is above 7700, STOXX Europe 50 is above 3800, and EURO STOXX 50 is above 4000.
As long as these support levels are holding, we are constructive from a price perspective


Remain Overweight Europe/UK & Non-US Equities; Pullback Over?; Buys in Industrials and Financials

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>Back on the 30 November, UK-based <a href="https://www.smartkarma.com/entities/wpp-plc" target="_blank" data-smartkarma-citation="entities:22213:1" rel="noopener">WPP PLC (WPP LN)</a>, the world's largest advertising company, tabled a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02315430-2A1266721?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">proposal</a> to delist 61.5%-held subsidiary <a href="https://www.smartkarma.com/entities/wpp-aunz-ltd" target="_blank" data-smartkarma-citation="entities:15931:1" rel="noopener">WPP AUNZ (WPP AU)</a> at A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. </p>
</div>
<div>
<p>This was an unsolicited Offer and no binding implementation agreement (BIA) had been entered into.</p>
<p>In <em><a href="https://skr.ma/JSrkm" target="_blank" rel="noopener">WPP AUNZ: Mad Men At Work</a></em>, I argued there was an air of opportunism to the Offer, and recommended buying at or below terms - on the expectation of a bump, as management argues the upside from its wide-ranging cost cuts.</p>
<h3><strong>The New News</strong></h3>
<p>WPP PLC has returned with a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02323439-2A1270746?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$0.70/share offer</a>, by way of  Scheme, valuing WPP AUNZ at an implied enterprise value of A$717mn. It is the intention of WPP AUNZ to enter into a BIA.</p>
<p>With that 27.3% bump, this looks done.</p>
</div>
<p>More below the fold.</p>
<div>
<p></p>
</div>


Back on the 30 November, UK-based WPP PLC (WPP LN), the world's largest advertising company, tabled a proposal to delist 61.5%-held subsidiary WPP AUNZ (WPP AU) at A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. 


This was an unsolicited Offer and no binding implementation agreement (BIA) had been entered into.
In WPP AUNZ: Mad Men At Work, I argued there was an air of opportunism to the Offer, and recommended buying at or below terms - on the expectation of a bump, as management argues the upside from its wide-ranging cost cuts.
The New News
WPP PLC has returned with a A$0.70/share offer, by way of  Scheme, valuing WPP AUNZ at an implied enterprise value of A$717mn. It is the intention of WPP AUNZ to enter into a BIA.
With that 27.3% bump, this looks done.

More below the fold.




<p>UK-based <a href="https://www.smartkarma.com/entities/wpp-plc" target="_blank" data-smartkarma-citation="entities:22213:1" rel="noopener">WPP PLC (WPP LN)</a>, the world's largest advertising company, has tabled a proposal to delist 61.5%-held subsidiary <a href="https://www.smartkarma.com/entities/wpp-aunz-ltd" target="_blank" data-smartkarma-citation="entities:15931:1" rel="noopener">WPP AUNZ (WPP AU)</a>.</p>
<p>The Offer price is A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. </p>
<p>WPP is assessing whether to launch the Offer by way of a Scheme or an Off-Market Takeover.</p>
<p>A fully franked dividend is up for negotiation as part of the Offer; although if paid, it will reduce the Offer price. </p>
<p>A binding implementation agreement has not yet been entered into. The independent directors of WPP AUNZ are considering the proposal.</p>
<p>More below the fold.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/175/234/original/VfBK.gif?1606711406" class="editor-image img-responsive" data-smartkarma-image-id="175234"></figure>
</section>


UK-based WPP PLC (WPP LN), the world's largest advertising company, has tabled a proposal to delist 61.5%-held subsidiary WPP AUNZ (WPP AU).
The Offer price is A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. 
WPP is assessing whether to launch the Offer by way of a Scheme or an Off-Market Takeover.
A fully franked dividend is up for negotiation as part of the Offer; although if paid, it will reduce the Offer price. 
A binding implementation agreement has not yet been entered into. The independent directors of WPP AUNZ are considering the proposal.
More below the fold.





Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

<p>The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering nearly 1,500 companies, we’re able to provide a wide variety of what we believe are attractively priced securities looking across sectors, industries, and geographies. Best Ideas are nominated by analysts and approved by managers in addition to the normal due diligence processes that precede our published research and ratings.</p><p>The list may include a broad mix of quality and risk characteristics to meet varying investor needs, including no-, narrow-, and wide-moat companies as well as the full spectrum of uncertainty ratings from low to very high. Most or all of the highlighted stocks will be trading at a discount to our estimate of intrinsic value, indicating improved odds of capital appreciation.</p>

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering nearly 1,500 companies, we’re able to provide a wide variety of what we believe are attractively priced securities looking across sectors, industries, and geographies. Best Ideas are nominated by analysts and approved by managers in addition to the normal due diligence processes that precede our published research and ratings.The list may include a broad mix of quality and risk characteristics to meet varying investor needs, including no-, narrow-, and wide-moat companies as well as the full spectrum of uncertainty ratings from low to very high. Most or all of the highlighted stocks will be trading at a discount to our estimate of intrinsic value, indicating improved odds of capital appreciation.

United Kingdom

WPP plc operates a communications services group.  The Company's operations encompass advertising, media investment management, information and consultancy, public relations and public affairs, healthcare and specialist communications, and branding and identity services.

WPP PLC (WPP LN)

WPP - Harnessing AI, data and platform

WPP’s capital markets day (CMD) focused on the combination of creativity and AI at scale and how these can be leveraged to boost clients’...

Edison Investment Research

Remain Overweight Europe/UK & Non-US Equities; Pullback Over?; Buys in Industrials and Financials

Remain overweight Europe/UK and non-US equities; we are buyers on pullbacks as long as the FTSE 100 is above 7700, the STOXX Europe 50 is above...

Vermilion Research

WPP AUNZ: More Mad Men At Work

This solid bump should see this deal through. Expect WPP AUNZ to trade tight to terms - I see A$0.70/share as I type - on account of shareholders...

David Blennerhassett

WPP AUNZ: Mad Men At Work

There is an air of opportunism here, however, the indicative Offer Price is okay, if looking at WPP's trading pattern ahead of COVID-19. A bump...

David Blennerhassett

Best Ideas List for January 2019

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering...

Morningstar, Inc.