FTSE 100 movers: Centrica rallies; Just Eat dragged lower by Takeaway.com

London' s FTSE 100 was down 0.8% at 7,226.97 in afternoon trade on Monday, dented by a stronger pound.

British Gas owner Centrica was on the front foot as Berenberg slashed its price target to 80p from 140p, it ighlighting a long road to recovery, but said the shares are inexpensive and the company could be an M&A target.

"Before he leaves, Centrica’s CEO, Iain Conn, is doing all he can to turn Centrica’s fortunes around: narrowing the focus of the group, reducing capital intensity and debt through disposals; and stepping up cost cutting to put Centrica’s remaining businesses on a stronger competitive footing," the bank said.

"While this reboot should be enough to steady the ship, it is unclear whether it will reinvigorate investor appetite."

On a more positive note, it added that the shares don't look particularly expensive at current levels and, "after cutting the dividend to a more sustainable level, the 7.4% (2020E) yield may tempt some".

The bank also said that Centrica could be a future M&A target for majors pursuing climate change goals.

On the downside, AstraZeneca was in the red even as the pharmaceuticals giant said that its cancer treatment, Imfinzi, has been shown to prolong survival in a late-stage lung cancer study.

Just Eat was under pressure, with traders suggesting that the stock was being dragged lower by weakness in Takeaway.com shares. The two companies announced last month that they had agreed the terms of an £8.3bn merger that would create one of the world' biggest online food delivery companies.

FTSE 100 - Risers

Aviva (AV.) 372.20p 2.25%
Kingfisher (KGF) 201.50p 1.87%
Prudential (PRU) 1,425.50p 1.50%
Royal Bank of Scotland Group (RBS) 190.80p 1.44%
ITV (ITV) 122.27p 1.43%
NMC Health (NMC) 2,798.00p 1.16%
Centrica (CNA) 68.54p 1.00%
Phoenix Group Holdings (PHNX) 657.00p 1.00%
Legal & General Group (LGEN) 233.75p 0.71%
Standard Chartered (STAN) 653.40p 0.68%

FTSE 100 - Fallers

Compass Group (CPG) 2,011.50p -4.03%
AstraZeneca (AZN) 6,978.00p -3.82%
Fresnillo (FRES) 693.40p -3.59%
Evraz (EVR) 482.90p -3.32%
Coca-Cola HBC AG (CDI) (CCH) 2,720.00p -3.24%
Just Eat (JE.) 758.00p -3.17%
Rentokil Initial (RTO) 450.80p -3.12%
Associated British Foods (ABF) 2,281.00p -3.10%
Barratt Developments (BDEV) 597.40p -2.54%
Diageo (DGE) 3,371.00p -2.53%