0920 GMT - Shares in Lookers rise 6% after the U.K. car dealer reported higher first-half revenue and reinstated interim dividends. Underlying pretax profit of GBP47.2 million was better than expected, gross margins are still high and inflationary pressures remain well-managed, Peel Hunt says. "The outlook for next year looks like more of the same," Peel Hunt analysts say in a note, reiterating their buy recommendation. "Given the strength of the order book, we should be upgrading, but questions center on the supply of new cars, rather than consumer confidence or willingness to buy. We leave forecasts unchanged," they say. Lookers is a Peel Hunt corporate client. (philip.waller@wsj.com)

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Tracsis Set for Positive FY 2022 Results

0839 GMT - Tracsis's fiscal 2022 trading update showed evidence of material top-line growth well beyond consensus estimates, Berenberg says. The provider of technology and services to the transport industry recently bought Railcomm, which has continued to win new contracts in North America, the German brokerage says. Overall, Tracsis has achieved significant organic growth well beyond expectations, it says. "Importantly, Tracsis achieved this strong top-line growth despite well-documented rail strike activity, which we understand has extended procurement processes for new TRACS Enterprise and smart ticketing contracts," Berenberg says. The brokerage reiterates its buy rating on the stock. Shares are up 4.0% at 1,050 pence. (joseph.hoppe@wsj.com)

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Costain Shares Look Good Value After 1H Results

0822 GMT - Costain's shares look simply too cheap given the value on offer and the amount of cash on the balance sheet, Liberum says. The smart-infrastructure group's 1H results were largely in line with expectations, but cash generation--which is key to infrastructure companies--has been excellent, Liberum analysts say in a note. The order book fell to GBP2.7 billion at the end of 1H from GBP3.4 billion at the end of 2021, but management is confident of a stronger 2H, Liberum says. "We expect 2022 revenue to increase 10% year-on-year, helped by HS2 and the Regional Investment Programme [Highways England contract], and inflation," the brokerage says. Liberum retains its buy rating and 80.0 pence price target on the stock. Shares are up 7.3% at 42.4 pence. (joseph.hoppe@wsj.com)

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Richemont's YNAP Deal Comes as a Relief, Citi Says

0810 GMT - Richemont's deal to sell a stake in YNAP to Farfetch is good news for the Swiss luxury-goods group and should drive higher estimates for earnings ahead, Citi analysts say in a note. The company said last year it was in talks over a potential divestment of the struggling e-commerce platform to British-Portuguese peer Farfetch, but chances of the talks coming to nothing had increased in recent months, Citi says. The deal is as such positive and should entail high single-digit increases to consensus estimates for Richemont's operating profit this fiscal year and next, the bank says, keeping a buy rating and a CHF130 target on the stock. Shares gain 1.3% to CHF111.45. (joshua.kirby@wsj.com; @joshualeokirby)

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Richemont Can Focus on Luxury Brands Following YNAP Divestment

0758 GMT - Richemont's divestment of struggling e-commerce platform YNAP to peer Farfetch will allow the Swiss group to focus on its core luxury-goods business, RBC Capital Markets analyst Piral Dadhania says in a note. Cartier owner Richemont will sell a stake of just under 50% to Farfetch and a further small take to Emirati investor Mohamed Alabbar, it said Wednesday. The deal enables the Richemont portfolio to return to a pure-play luxury group, Dadhania says, noting that this could entail a valuation rerating given the strength of its jewelry business. RBC has an outperform rating and a CHF119 target on Richemont stock; shares trade 1.2% higher at CHF111.30. (joshua.kirby@wsj.com; @joshualeokirby)

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Farfetch Seen as Securing a Great Deal on YNAP

0739 GMT - Farfetch has secured an excellent deal with its acquisition of a stake in Yoox-Net-A-Porter, and potentially the entirety, Bernstein analysts say in a note. The British-Portuguese luxury e-commerce company will acquire an initial 47.5% stake in peer YNAP from its Swiss owner Richemont in return for shares making up 12%-13% of issued share capital. Under the deal, Richemont will meanwhile open e-concessions for most of its brands on Farfetch's marketplace, giving a much-needed boost to traffic, Bernstein says. The deal is also good news for Richemont after years of YNAP's depressing effect on the group's bottom line, the brokerage adds. Richemont shares rise 1.5% to CHF111.60 following the news. (joshua.kirby@wsj.com; @joshualeokirby)

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Richemont Reaches a Sweet But Painful YNAP Exit With Farfetch Deal

0645 GMT - Richemont's deal to divest YNAP to Farfetch comes at a bitter price, but is nevertheless excellent news for the Swiss luxury-goods group, Vontobel analyst Jean-Philippe Bertschy says in a note. The Cartier owner will divest a majority stake to British-Portuguese firm Farfetch and investor Mohamed Alabbar, with Farfetch given an option to take 100% of peer YNAP after three to five years. The deal comes as a surprise with the market expecting other players to take stakes, but brings a close to years of underperformance by a business that has dogged Richemont, Bertschy says. It has been a long wait for a painful exit, he adds, with Richemont to book a EUR2.7 billion writedown. Vontobel has a buy rating and a CHF140 target on Richemont stock. (joshua.kirby@wsj.com; @joshualeokirby)


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(END) Dow Jones Newswires

08-24-22 1157ET