BRIEFING - WEEK AHEAD: Brokers expect Persimmon to progress

UPDATES from house builders and retailers will provide hints about the strength of the economy this week.

Halfords are led by chief executive Matt DaviesHalfords are led by chief executive Matt Davies[PH]

Analysts will look for clues about the housing market’s prospects for the rest of the year when Persimmon updates investors tomorrow.

Broker Numis Securities said: “The main focus will be Persimmon’s assessment of market conditions ... which we believe are not materially different to last year in the new-build sector.”

It expects the builder to report progress in its key financials and to confirm it is on track to increase volumes by 15 per cent this year.

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The main focus will be Persimmon’s assessment of market conditions ... which we believe are not materially different to last year in the new-build sector

Broker Numis Securities

Improved profits from its buses in the UK should drive first-half earnings at transport firmFirstGroup on Wednesday.

Underlying earnings for the half year to September should show modest growth in earnings per share from 1.9p to 2p.

Broker Panmure Gordon said: “UK bus margins should finally improve a bit, hopefully from 3.5 per cent to 4.5 per cent.”

Bike and car parts retailer Halfords, led by chief executive Matt Davies (below), is set to ride high when it unveils first-half results on Thursday.

The figures should show another strong half for cycling sales and profits and the City is likely to raise its consensus forecasts, according to Oriel Securities which has a ‘buy’ recommendation on the shares.

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Bike and car parts retailer Halfords, led by chief executive matt davies, is set to ride high when it unveils first-half results on Thursday. 

The figures should show another strong half for cycling sales and profits and the city is likely to raise its consensus forecasts, according to oriel Securities which has a ‘buy’ recom- mendation on the shares.

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RETAILER Marks & Spencer is tipped to report a bitter-sweet first half on Wednesday. Second-quarter like-for-like clothing sales are again expected to fall due to the very warm autumn.

But shoppers’ desire for treats is likely to drive growth in like-for-like food sales.

Hargreaves Lansdown said brokers expected pre-tax profits to fall about 7 per cent to £244million.

“Nonetheless, with previously outlined website difficulties potentially largely behind it and supply chain efficiencies implemented, management outlook comments should prove supportive,” the ­broker said.

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Drug group AstraZeneca is tipped to lift its annual profit forecast when it reports third-quarter results on Thursday.

Panmure Gordon expects Astra to report a solid three months and predicts core earnings per share will decline to the high single digits rather than double digits.

“The business has benefited in the period, not facing the sort of headwinds that non-dollar reporting pharmaceutical companies have faced,” the broker said.

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