1034 GMT - Foresight Group Holdings has notable readacross from another of its peers being taken private at a material valuation uplift, Numis says in a note after its peer Gresham House received a takeover cash offer at a premium from U.S. private equity firm Searchlight Capital Partners. Schroders took over peer Greencoat in 2021, analyst David McCann notes. "We also consider Foresight as a strong takeout candidate, given the current valuation, noting the further third party validation of both the sector valuation and appetite for exposure to this part of the industry," McCann adds. Foresight shares have been largely overlooked partly given its low liquidity, small size, perceived complexity and company-specific concerns, but this offers investors an opportunity to get exposure to an undervalued energy transition play, he adds. (elena.vardon@wsj.com)

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Iomart's Executive Reshuffle Welcomed by Analysts

1023 GMT - Cloud computing company Iomart's new part-time executive chair, Lucy Dimes, is an accomplished business leader having held senior executive positions in FTSE 100, FTSE 250 as well as private equity-owned companies spanning telecoms, technology, business and financial services, Shore Capital analyst Martin O'Sullivan says in a note. Dimes--who also sits on Babcock International's board--has substantial experience in complex and highly-regulated international markets, O'Sullivan says. "We welcome this reshuffle...which builds on its recent operational and financial momentum as best evidenced by its recent FY 2023 results which highlighted, inter alia, double digit order bookings growth within the cloud-managed services area," he says. Shore rates the stock buy and has a 171 pence target price. (anthony.orunagoriainoff@dowjones.com)

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European Stocks Drop Ahead of Likely US Losses

1015 GMT - European stocks fall after mostly lower Asia trading and an expected negative open on Wall Street. The Stoxx Europe 600 drops 0.6%, the FTSE 100 retreats 0.4%, the DAX backtracks 0.5% and the CAC 40 slips 1.2%, with luxury-goods stocks among the biggest fallers after Compagnie Financiere Richemont first-quarter sales fell short of expectations. Brent crude loses 1.8% to $78.46 a barrel. IG futures data show the Dow opening at 34428, versus Friday's close of 34509. Stocks in mainland China, Australia and South Korea closed lower after Chinese retail sales missed forecasts. "The data highlights the need for increased [Chinese] government spending, but it doesn't seem like Beijing is prepared to fulfill this need at the moment," IG analysts write. (philip.waller@wsj.com)


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07-17-23 1205ET