FTSE 250 movers: Travel stocks fall; Synthomer lifted by upgrade
London’s FTSE 250 was down 1.2% at 17,886.75 in afternoon trade on Monday.
Travel and leisure stocks fell amid ongoing concerns about the pandemic and related restrictions, with travel company TUI, cruise operator Carnival, Cineworld, and budget airline easyJet all weaker.
Beazley was also in the red after Morgan Stanley cut the stock to ‘equalweight’ from ‘overweight’, arguing that the insurer’s limited financial flexibility will leave the cost of equity at elevated levels and limit the upside.
MS said that despite the capital raise in the first half of the year, Beazley's growth prospects are constrained by limited capital and financial flexibility.
"Our detailed analysis suggests that the company could see challenges in delivering the levels of growth that we envisaged in our previous forecasts," it said.
Synthomer gained after JPMorgan Cazenove upgraded the shares to ‘overweight’ from ‘neutral’ and hiked the price target to 450p from 242p as it highlighted the company’s exposure to the gloves market and potential benefit from the Covid-19 pandemic.
It noted that Synthomer sells nitrile latex for nitrile gloves and that this business made up around 20% of the company’s earnings in 2019, "hence the earnings tailwind from the Covid-19 are well known".
"However, we believe that both the magnitude and the duration of this upside is likely to be better than the market assumes."
FTSE 250 - Risers
Indivior (INDV) 106.50p 4.21%
Domino's Pizza Group (DOM) 331.20p 4.09%
Frasers Group (FRAS) 389.80p 3.95%
AO World (AO.) 373.50p 2.89%
Rank Group (RNK) 91.90p 2.68%
Biffa (BIFF) 213.50p 2.64%
Mitchells & Butlers (MAB) 163.00p 2.52%
OneSavings Bank (OSB) 324.40p 2.40%
Synthomer (SYNT) 397.60p 2.37%
Wetherspoon (J.D.) (JDW) 943.00p 2.11%
FTSE 250 - Fallers
TUI AG Reg Shs (DI) (TUI) 289.70p -10.28%
Carnival (CCL) 934.60p -9.04%
Network International Holdings (NETW) 220.20p -8.25%
Cineworld Group (CINE) 26.99p -7.51%
Kainos Group (KNOS) 1,280.00p -6.43%
Beazley (BEZ) 310.60p -4.96%
easyJet (EZJ) 521.80p -4.85%
Gamesys Group (GYS) 1,134.00p -4.55%
IWG (IWG) 272.00p -4.43%
FirstGroup (FGP) 49.48p -4.20%