Category: Top Story

Barratt Redrow plc (LSE:BTRW) shares dropped more than 2% on Monday after Deutsche Bank lowered its earnings projections and reduced its price target by 15%, pointing to weaker trading momentum and rising fire-safety remediation costs.

Analyst Chris Millington cut the target to 454p from 536p, while retaining a “buy” recommendation on the stock, which last closed at 388.90p.

Deutsche Bank reduced its underlying pre-tax profit forecasts by 9% for fiscal 2026, 6% for FY27 and 7% for FY28. The revisions followed Barratt’s first-half results, which Millington said were largely in line with expectations but underscored the impact of difficult market conditions.

According to the broker, subdued demand in the first half weighed on both profit margins and the forward order book. In addition, Barratt’s £1.3 billion provision balance remains a key drag on valuation. Deutsche Bank said this level of provisioning is likely to constrain cash generation, even as management pursues outlet growth and margin recovery initiatives.

Reflecting these pressures, the brokerage lifted its discount rate assumption from 8% to 10%, aligning it with longer-term historical averages and better accounting for the financial impact of ongoing fire-safety remediation work.

Despite near-term challenges, Deutsche Bank expects Barratt to deliver above-average profit growth over the coming years, supported by plans to expand outlets and rebuild margins. The bank forecasts a FY28 return on tangible equity of 8.5%, suggesting the current valuation of 0.79 times price-to-net tangible assets is broadly justified.

Even so, Millington argued the shares could warrant a higher multiple if market conditions improve, particularly if aided by potential government measures to stimulate housing demand.

The revised 454p price target is based on Deutsche Bank’s estimate of the company’s net tangible asset value for calendar year 2026.

Pantheon Resources plc (LSE:PANR) has detailed plans for its 12 March virtual AGM, to be followed by a public investor webinar, while confirming changes to its board structure as it transitions toward development-focused execution.

Executive Chair David Hobbs will move into a non-executive position, and director Allegra Hosford Scheirer will step down. The governance adjustments reflect a strategic pivot from exploration-led oversight to an emphasis on engineering delivery as the company progresses its North Slope development programme.

On the operational front, Pantheon has commenced seismic reprocessing over the north-western section of its Kodiak project, located updip from the Theta West-1 discovery. The company is also preparing for a potential Theta West-2 appraisal well, subject to securing funding and the necessary permits. In parallel, Pantheon plans to present its portfolio at the NAPE 2026 expo as it seeks to attract strategic partners and capital to support advancement of its Alaskan assets.

From an investment standpoint, the outlook remains pressured by ongoing financial challenges, including recurring losses and negative free cash flow. Technical indicators are also weak, with the share price trading well below key moving averages. Valuation support is limited, as a negative price-to-earnings ratio reflects unprofitable operations and no dividend yield is currently available.

More about Pantheon Resources

Pantheon Resources plc is an AIM-listed oil and gas company focused on developing its wholly owned Ahpun and Kodiak fields on Alaska’s North Slope, close to established infrastructure including roads, pipelines and the Trans Alaska Pipeline System. The company is targeting monetisation of independently certified contingent resources of approximately 1.6 billion barrels of oil and 6.6 trillion cubic feet of associated gas, with plans to reach a final investment decision and first production at Ahpun before advancing Kodiak.

Altona Rare Earths plc (LSE:REE) has released initial assay results from its 2025 drilling programme at the Monte Muambe project in Mozambique, with roughly 10% of samples analysed to date.

Data received from diamond drill holes across the Fluorite and Python zones confirm near-surface mineralisation consistent with potential open-pit extraction. Early intercepts include peak grades of 82.76% CaF₂ and 409 g/t Ga₂O₃, while the weighted average fluorspar grade stands at 31% CaF₂ — broadly aligned with commercial mining benchmarks and company expectations.

Further assay results are expected in the coming weeks and will feed into a maiden mineral resource estimate for fluorspar and gallium. Management said the strong early data, alongside encouraging engagement with investors at Mining Indaba, reinforces the project’s development potential and strategic importance.

Monte Muambe already hosts a JORC-compliant rare earths resource and benefits from a 25-year mining licence. The asset forms the core of Altona’s strategy to fast-track annual production of 50,000 tonnes of acid-grade fluorspar over a projected mine life of at least 12 years, while also evaluating gallium recovery from processing tailings. The company believes the project positions it to supply critical raw materials into sectors such as batteries, nuclear energy and advanced technologies, strengthening its exposure to Africa’s evolving critical minerals value chain.

Despite the operational progress, the investment case remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, persistent cash burn and rising leverage alongside declining equity. Technical indicators provide some counterbalance, with the shares exhibiting a strong upward trend and positive momentum signals. However, valuation metrics remain limited in usefulness due to negative earnings and the lack of dividend support.

More about Altona Rare Earths

Altona Rare Earths plc is a London Main Market-listed exploration and development company focused on critical raw materials projects across Africa. Its flagship Monte Muambe project in Mozambique hosts rare earths, fluorspar and gallium mineralisation under a 25-year mining licence, with near-term fluorspar production targeted alongside longer-term rare earths development.

The group is also advancing the Sesana copper-silver project in Botswana as part of a diversified portfolio aimed at supplying materials to clean energy, high-technology, defence and industrial markets.

Seraphim Space Investment Trust plc (LSE:SSIT) has reported significant valuation increases across its four largest SpaceTech investments as of 31 December 2025, following major contract awards and substantial funding rounds.

The combined fair value of ICEYE, ALL.SPACE, D-Orbit and HawkEye 360 climbed by £69 million to £261 million. That represents a 36% uplift across those positions and equates to a 24% rise relative to the trust’s most recently published net asset value, reflecting strengthening fundamentals and execution across its core portfolio companies.

The largest contribution came from ICEYE, which was revalued using public market comparables after securing a €1.7 billion contract with the German government. ALL.SPACE also saw gains linked to recent corporate developments, while D-Orbit and HawkEye 360 were re-rated following sizeable late-stage investment rounds backed by new institutional participants.

The trust indicated that no further material valuation adjustments are expected elsewhere in the portfolio for the reporting period. Interim results for the six months to 31 December 2025 are scheduled for release on 5 March 2026, alongside presentations for analysts and retail investors, signalling management’s confidence in ongoing portfolio progress.

From an investment perspective, the outlook is tempered by weak earnings quality and limited cash generation, despite the company maintaining a highly conservative balance sheet. Technically, the share price trend remains strong but appears stretched. Valuation metrics look demanding, with a high price-to-earnings ratio and no declared dividend, though this is partially balanced by a consistent stream of positive portfolio developments, particularly defence-related contract wins.

More about Seraphim Space Investment Trust Plc

Seraphim Space Investment Trust plc is the first publicly listed fund focused exclusively on SpaceTech. It invests primarily in growth-stage, privately funded companies positioned to become global leaders across areas such as climate technology, satellite communications, mobility and cyber security. The trust is listed on the main market of the London Stock Exchange and aims to back businesses with strong competitive moats and first-mover advantages in rapidly expanding orbital and data-driven markets.

British American Tobacco plc (LSE:BATS) delivered a 2.1% increase in constant-currency revenue to £25.6 billion in 2025, supported by resilient U.S. combustibles and strong momentum in its Velo Plus modern oral nicotine brand. Performance in the APMEA region remained constrained by fiscal and regulatory challenges, but growth in reduced-risk categories helped underpin overall progress.

Smokeless products accounted for 18.2% of group revenue during the year, while contributions from New Categories rose more than 77%. Profit from operations rose sharply, aided by a movement in Canadian provisions, strengthening cash generation and enabling enhanced shareholder returns. The board increased the dividend, announced a £1.3 billion share buyback and reiterated its medium-term growth ambitions. However, management cautioned that 2026 performance is likely to fall toward the lower end of guidance due to foreign exchange headwinds and continued investment in transformation initiatives.

From an outlook perspective, positive corporate developments—including capital returns and insider share purchases—support investor sentiment, alongside robust cash flow generation. That said, earnings volatility and a relatively elevated price-to-earnings ratio moderate the overall assessment. Technical indicators remain constructive, while the company’s strategic push into innovation, digital capabilities and reduced-risk products is expected to play a central role in long-term growth. Ongoing market-specific challenges, particularly in certain international regions, remain an area of focus.

More about British American Tobacco plc

British American Tobacco plc is a global tobacco and nicotine group whose traditional combustible cigarette business is increasingly complemented by a growing portfolio of smokeless and so-called New Category products. Its brands span vapour, heated tobacco and modern oral nicotine offerings, with a strategic emphasis on expanding reduced-risk revenues in the U.S. and across AME and APMEA regions.

Schroders plc (LSE:SDR) has agreed to a recommended all-cash acquisition by Pantheon, a newly established subsidiary of Nuveen, at a price of up to 612p per share, inclusive of permitted dividends. The offer values Schroders’ equity at approximately £9.9 billion on a fully diluted basis and represents a multiple of roughly 17 times 2025 adjusted operating profit. The bid also carries a premium of as much as 61% compared with recent average trading levels.

The proposed transaction would create one of the largest global active asset managers, overseeing close to $2.5 trillion in assets across institutional and wealth channels. Under the terms of the deal, the Schroders brand will be preserved, and London will remain the group’s principal headquarters outside the United States. Both boards have indicated their intention to unanimously recommend the offer, with completion targeted for the fourth quarter of 2026, subject to regulatory and shareholder approvals.

Nuveen and Schroders highlighted the strategic logic of the combination, citing complementary investment capabilities across public and private markets, shared cultural values and a mutual commitment to sustainability and innovation. The merger is expected to accelerate Schroders’ growth ambitions, broaden its cross-asset solutions and enhance its ability to serve clients globally. The announcement also noted substantial irrevocable undertakings from major shareholders, strengthening deal certainty.

From an outlook perspective, Schroders benefits from solid underlying profitability and strategic momentum, supported by a valuation uplift implied by the offer. While technical indicators suggest moderately positive share price momentum, restructuring costs and variability in cash flow remain areas to monitor as the transaction progresses.

More about Schroders plc

Schroders plc is a London-based global active asset manager providing investment management and wealth solutions to institutional and retail clients. With a long-standing family-influenced heritage, the firm operates across public and private markets and holds a significant position within the UK and international asset management landscape.