FTSE 100 movers: Croda and IHG hit by downgrades

London's FTSE 100 was up 0.8% at 7,560.65 in afternoon trade on Tuesday as the pound was dented by weak construction data.

Croda International was the biggest loser as UBS downgraded its stance on the shares to 'neutral' from 'buy', as it argued that the stock's multiple was now fair and 2019 growth is likely to be weighted to the second half.

The bank noted that the shares are now close to its target price, which it upped to 5,500p from 5,300p.

"The 2019E price-to-earnings of 26x and free cash flow yield of 3% look fair valuation metrics in the context of Croda's portfolio (75% of group EBIT comprising consumer and life science actives and 25% industrial-facing products) and peer valuations," it said.

InterContinental Hotels was also hit by a downgrade at UBS, to 'sell' from 'neutral'. The bank said that while IHG is one of the best breed of hoteliers and is understandably highly rated by the market, the risk/reward is unattractive given the recent multiple expansion.

Advertising giant WPP was in the red a day after confirming that it was in exclusive discussions with private equity firm Bain Capital about the sale of its majority stake in market research group Kantar, in a deal that would value the business at $4bn.

WPP, which announced last year that it was looking to sell the stake, said that Bain's proposal is subject to negotiation and there is no certainty the discussions will lead to a deal.

Auto Trader was on the back foot after a downgrade to 'hold' from 'add' at Peel Hunt.

FTSE 100 - Risers

Reckitt Benckiser Group (RB.) 6,319.00p 2.45%
Imperial Brands (IMB) 1,936.60p 2.38%
Ferguson (FERG) 5,806.00p 2.37%
Hiscox Limited (DI) (HSX) 1,751.00p 1.98%
National Grid (NG.) 855.50p 1.86%
Rentokil Initial (RTO) 402.80p 1.72%
Coca-Cola HBC AG (CDI) (CCH) 3,031.00p 1.71%
Aviva (AV.) 429.20p 1.68%
DCC (DCC) 7,176.00p 1.67%
Severn Trent (SVT) 2,087.00p 1.66%

FTSE 100 - Fallers

Croda International (CRDA) 4,837.09p -4.95%
Antofagasta (ANTO) 920.40p -3.01%
InterContinental Hotels Group (IHG) 5,176.00p -2.91%
WPP (WPP) 986.00p -2.61%
NMC Health (NMC) 2,455.00p -2.54%
ITV (ITV) 108.20p -2.52%
Mondi (MNDI) 1,791.00p -1.75%
Ocado Group (OCDO) 1,191.00p -1.61%
Auto Trader Group (AUTO) 543.80p -1.55%
Persimmon (PSN) 1,963.00p -1.26%