Citi thinks investors should take another look at the 'Anti UK8'
In a note sent to clients last week, analysts identify eight large domestic UK stocks that have suffered since the vote and could be undervalued: Marks & Spencer, BT, Lloyds, British Land, ITV, Legal & General, Persimmon, and Costa Coffee and Premier Inn owner Whitbread.
Citi writes: "These stocks, in aggregate, have been sharply de-rated in the last year and now trade on a 20% DY premium to the market. When taking into account the DY premium of Oil & Banks, value investors may want to take a closer look at some of these stocks."
The term "Anti UK8" is in reference to Citi's earlier group of UK8 stocks - eight companies it identified ahead of the Brexit referendum that it thought were good hedges against a "Leave" vote.
But the investment bank says that not all UK stocks are equal. While the FTSE 250, which is mostly made up of domestic companies, has also de-rated since the vote to leave the European Union, Citi's analysts write: "We still find it hard to get too excited about UK mid-caps, in aggregate, at these levels given the backdrop of UK macro uncertainty and weak GBP trends."
- India vs Pakistan at ICC T20 World Cup: The ‘Men in Blue’ have a definite advantage in this one
- Tamil drama 'Koozhangal' is India's official entry for Oscars 2022
- ICICI Bank net profit rises 25% on lower provisions in September quarter
- Best keyboard for writers in India
- Best large size party speakers in India