The FTSE 100 Index remained in a narrow range this week as traders watched the developments in the Middle East, where odds of a deal between the US and Iran rose. It also wavered because of the weak HSBC earnings.
This article looks at some of the top FTSE 100 and FTSE 250 shares to watch next week, including popular names like Burberry, Vodafone, BT Group, and ITV.
Vodafone and the BT Group to release their numbers
Telecommunications companies have remained in a tight range in the past few weeks as they are less affected by the ongoing US-Iran war. Vodafone Group stock was trading at 116p on Friday, down slightly from the year-to-date high of 120p. It remains much higher than the 2024 low of 55.25p.
BT Group, on the other hand, has also done well and is loitering at the highest level since in years. It has jumped by over 140% from its lowest level during the pandemic.
As we wrote earlier this week, analysts believe that BT Group’s growth will remain under pressure in the coming years as the broadband segment continues to lose customers. The company expects to lose over 800k customers in the last financial year, lower than the previous estimate of over 1 million.
BT has offset the ongoing revenue decline by cutting costs and exiting most of its international business. It is also addressing the business segment, which has been a top laggard over the years.
Vodafone, on the other hand, has been in a turnaround process in the past few years. This turnaround has seen it exit some of the large markets and increase its presence in others, such as Kenya. Traders will put more emphasis on the German service business.
Burberry’s results to focus on the Chinese business
Burberry Group will be the top FTSE 100 company to watch next week as it releases its financial results. These numbers come as the stock was trading at 1,200, up from last year’s low of 553p.
The company has done well because of the ongoing turnaround efforts, which have focused on introducing more British-focused designs and growing its Chinese sales.
Its main challenge is that the Chinese business remains under pressure as growth for luxury brands in the country fades. It has also faced challenges because of the ongoing US-Iran war, which has affected its business in the Middle East as tourist growth fades.
National Grid to release earnings as JP Morgan slashes target
National Grid stock will be in the spotlight as the company publishes its financial results next week. These numbers come a few days after analysts at JPMorgan slashed the target to 1,400p from the previous 1,450p. Morningstar analysts have a target of 1,440p.
National Grid has already warned that its EPS will drop by 1%, while its capital expenditure will soar as it increases its grid presence in key markets. It expects to spend £70 billion through FY31.
ITV to publish its financial results
ITV, a former FTSE 100 company now in the FTSE 250 Index, will be in the spotlight next week as it publishes its numbers.
The ITV share price was trading at 82p, up sharply from the year-to-date low of 71.15p. It rose after reports that Sky was considering buying its broadcast channels for £1.6 billion. Such a deal would create a top 3 UK streamer to compete with companies like Netflix and YouTube.
The most recent results showed that two-thirds of its revenue now comes from ITV Studios and M&E digital. Its studios revenue rose by 5% to £2.13 billion, while advertising rose by 5% amid the shift in streaming.
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