FTSE 250 movers: Diploma rises but Metro hit by Berenberg note
London's FTSE 250 was down 0.6% to 20,725.97 in afternoon trade on Wednesday.
Diploma was in the green as it announced the departure of chief executive Richard Ingram less than four months after he took on the role and said it was trading solidly and on track to meet profit expectations for the year to the end of September.
RBC Capital Markets upped its price target on 'sector perform' rated Diploma to 1,280p from 1,130p and said it continues to like the company for its strong positions in niche markets, its continued high returns and the ability to augment underlying growth with bolt-on/fill-in deals.
"However, the shares have been strong, outperforming FTSE 100 10% in the year to date and, we continue to see the valuation as up with events and already discounting further acquisition potential, whilst the CEO uncertainty is unhelpful," RBC added.
On the downside, Metro Bank retreated as Berenberg cut its price target on the challenger bank to 2,500p from 3,000p and retained its 'sell' rating.
"We believe lagging returns reflect persistent tension between growth and profitability, which should drive disappointment both against 2020 targets and in the longer term.
"Given the bank’s valuation remains stretched, we believe the shares have further to fall as sentiment turns and earnings per share downgrades come through."
FTSE 250 - Risers
Syncona Limited NPV (SYNC) 277.45p 4.50%
Thomas Cook Group (TCG) 84.50p 3.43%
Diploma (DPLM) 1,398.00p 2.42%
Victrex plc (VCT) 3,244.00p 2.40%
Workspace Group (WKP) 1,094.00p 2.24%
TI Fluid Systems (TIFS) 286.80p 1.99%
Charter Court Financial Services Group (CCFS) 369.00p 1.82%
Barr (A.G.) (BAG) 701.00p 1.74%
Jupiter European Opportunities Trust (JEO) 900.96p 1.69%
Rotork (ROR) 345.10p 1.68%
FTSE 250 - Fallers
Metro Bank (MTRO) 2,808.00p -3.97%
McCarthy & Stone (MCS) 109.10p -3.79%
Rank Group (RNK) 168.60p -3.66%
Dunelm Group (DNLM) 515.20p -3.34%
Euromoney Institutional Investor (ERM) 1,290.00p -3.15%
FirstGroup (FGP) 86.40p -3.03%
Wood Group (John) (WG.) 758.80p -2.94%
Kier Group (KIE) 943.50p -2.88%
Travis Perkins (TPK) 1,121.50p -2.82%
JD Sports Fashion (JD.) 501.00p -2.64%