FTSE 100 movers: IAG flies lower; Pearson boosted by upgrade
London’s FTSE 100 was down 0.8% at 5,813.07 in afternoon trade on Monday.
Stocks with exposure to the pandemic and restrictions were hit again, with British Airways owner IAG, Premier Inn owner Whitbread, engine maker Rolls-Royce and InterContinental Hotels all lower.
Software group Sage was also under pressure after German peer SAP cut its full-year revenue guidance.
On the upside, Pearson rallied after UBS upgraded its rating on shares of the education publisher to ‘buy’ from ‘neutral’ and lifted the price target to 650p from 545p as it becomes more positive on US higher education.
UBS said there is more upside than downside risk to FY21 consensus forecasts; the disposal of non-core assets followed by a buyback and cost-out could be more than 20% earnings accretive; Pearson can build profitable businesses in US Higher Education, enabling 7% FY21-25 estimated group EBIT compound annual growth rate.
The bank said Pearson is attractive, offering earnings growth, an 8% estimate FY22 free cash flow yield and M&A optionality.
AstraZeneca was also in the black after saying that its Covid-19 vaccine with Oxford University had produced an immune response in the young and elderly.
FTSE 100 - Risers
Pearson (PSON) 526.20p 2.69%
AstraZeneca (AZN) 8,134.00p 2.40%
Pennon Group (PNN) 1,040.00p 1.66%
BT Group (BT.A) 106.05p 1.43%
Avast (AVST) 502.50p 1.43%
SSE (SSE) 1,354.50p 1.31%
Smiths Group (SMIN) 1,441.50p 1.26%
Polymetal International (POLY) 1,780.50p 1.16%
Hikma Pharmaceuticals (HIK) 2,578.00p 1.14%
British Land Company (BLND) 383.90p 0.97%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 103.55p -5.00%
Sage Group (SGE) 662.60p -4.52%
Whitbread (WTB) 2,295.00p -3.81%
Burberry Group (BRBY) 1,433.50p -3.66%
Rolls-Royce Holdings (RR.) 235.20p -3.49%
Compass Group (CPG) 1,110.50p -3.43%
InterContinental Hotels Group (IHG) 4,065.00p -3.24%
Standard Life Aberdeen (SLA) 235.20p -3.01%
Kingfisher (KGF) 310.90p -2.87%
Ocado Group (OCDO) 2,251.00p -2.68%