UK Sping Budget Announcements Unlikely to Affect -3-

0943 GMT - Sterling's positive correlation to market sentiment may have weakened as the currency remains the second best performing G10 currency in the year-to-date after the Swiss franc despite recent risk aversion, MUFG Bank says. The dramatic narrowing of the U.K.'s current account deficit has helped to break that link, MUFG analyst Derek Halpenny says in a note. Another factor is that U.K. Prime Minister Rishi Sunak is providing optimism that the negative trade implications of Brexit could be eased somewhat, he says. "Finally, there has been a notable improvement in fiscal credibility." GBP/USD falls 0.1% to 1.2145 but EUR/GBP drops 0.1% to 0.8821. ([e-mail])

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TruFin's Quality Revenues Underpin Strong Margin Trajectory

0936 GMT - TruFin is on track for significant financial progress, says Liberum in a note after the technology group posted its 2022 results. "TruFin's FY22 prelims confirm the high quality of revenues and the clear margin trajectory of its four [operating companies]," say analysts Nick Anderson and James Allen. They add the group is on track to demonstrate material financial progress as its matures, pointing to its good start to 2023 and strong cash position. Liberum has a buy rating on the stock and raises its target price to 126 pence from 123 pence. Shares are flat at 69 pence, having gained 3.8% year-to-date. ([e-mail])

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Advanced Medical Solutions' Reorganization Creates a Risk

0931 GMT - Advanced Medical Solutions' U.S. reorganization creates a short-term risk that could materially hurt profits, Liberum analysts Seb Jantet and Edward Thomason write in a research note. "Although we understand the rationale for this move, we think that it significantly increases forecast risk in the short-term," they say. AMS is going from three partners to two after a strategic review of its U.S. LiquiBand business. However, there is no certainty that the two remaining partners will be able to pick up the slack, and even a small miss on its very profitable LiquiBand product could materially hurt profits, the analysts say. Shares are unlikely to perform until this risk is reduced, Liberum says, and consequently changes its recommendation to hold from buy. Shares are down 8.02%. ([e-mail])

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IG Group Shares Drop on Stretched Full-Year Expectations

0929 GMT - IG Group shares fall 7.2% at 715.75 pence, its lowest price in almost eight months after the online-trading company posted softer-than-expected third-quarter trading revenue. The group will need a rebound in the fourth quarter to meet market views for its full-year figures, says RBC Capital Markets in a note. "Guidance is for FY23 revenue and PBT to be in-line with current market expectations, though this will require a circa 20% jump up in revenues quarter-on-quarter, and so now looks slightly stretching, though volatility in March will likely serve as a tailwind," says analyst Ben Bathurst. RBC has an outperform rating on the stock. ([e-mail])

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Balfour Beatty's Hike in Shareholder Returns Shows Clear Confidence

0920 GMT - Balfour Beatty's 2022 results saw a whopping 42% increase in underlying profit and it is set to return more cash to shareholders through a GBP150 million share buyback for the third consecutive year and a 17% full-year dividend increase, Interactive Investor says. At a time when many businesses are cutting dividends to combat the sluggish macroeconomic backdrop, income investors will be encouraged by the increased shareholder payouts and it is a clear sign of confidence from the infrastructure company about its outlook, Interactive head of investment Victoria Scholar says. "Balfour Beatty has also benefited from portfolio diversification both in terms of its variety of operations as well as its range of geographies," Scholar says. Shares are up 2.8% at 350.0 pence. ([e-mail])

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03-15-23 0831ET