FTSE 100 movers: EasyJet flies higher on RBC upgrade; M&S drops before results
London's FTSE 100 was up 0.2% to 7,508.08 in afternoon trade.
EasyJet flew higher as RBC Capital Markets upped its stance on the budget airline to 'sector perform' from 'underperform' and hiked the price target to 1,325p from 875p, saying it's likely the company has reached its profit nadir.
The bank said it was lifting the stock on the growing change the EBITDAR margin has troughed. It also said the demand outlook has firmed and the balance sheet outlook has improved. "Our sector perform reflects a 70-75% chance this is already priced into the shares."
Babcock International was trading higher ahead of its full-year results on Wednesday. Deutsche Bank said in a note that the stock could rebound somewhat further if Babcock was to report a solid full-year 2017 and supportive growth guidance. "We see Babcock as well positioned but we need to see consistency of delivery and proof that cash conversion (especially to free cash flow) is on an improving path, in order to be more positive."
RBS was in the black amid reports that most of the claimants suing the bank over its £12bn rights issue in 2008 are willing to accept a £200m settlement with the lender.
On the downside, retailer Marks & Spencer was weaker ahead of its final results on Wednesday. Barclays expects underlying FY16/17 profit before tax of £596m and a full-year dividend of 18.7p. "Although there will obviously be a good deal of attention on last year’s financial results, the more important focus will arguably be on any forward-looking commentary - both with respect to the company’s own plans and the state of the wider market," it said.
Risers
easyJet (EZJ) 1,303.00p 2.68%
Babcock International Group (BAB) 965.50p 2.55%
Convatec Group (CTEC) 311.90p 1.93%
Royal Bank of Scotland Group (RBS) 266.10p 1.72%
Rentokil Initial (RTO) 259.90p 1.68%
Johnson Matthey (JMAT) 3,115.00p 1.57%
Rolls-Royce Holdings (RR.) 866.50p 1.52%
Severn Trent (SVT) 2,484.00p 1.47%
Associated British Foods (ABF) 2,949.00p 1.44%
CRH (CRH) 2,825.00p 1.00%
Fallers
Intu Properties (INTU) 262.50p -1.91%
Mediclinic International (MDC) 871.50p -1.75%
Kingfisher (KGF) 362.00p -1.66%
Marks & Spencer Group (MKS) 389.90p -1.42%
WPP (WPP) 1,686.00p -1.40%
Land Securities Group (LAND) 1,065.00p -1.11%
Admiral Group (ADM) 1,985.00p -1.10%
Hammerson (HMSO) 577.50p -1.03%
Paddy Power Betfair (PPB) 8,475.00p -0.99%
Provident Financial (PFG) 3,103.00p -0.96%