FTSE 100 movers: Reckitt rallies but Smith & Nephew hit by CEO retirement
London’s FTSE 100 was down 0.3% to 7,499.20 in afternoon trade on Monday as the pound rallied against the euro and the dollar following last week’s losses.
Consumer goods giant Reckitt Benckiser was on the front foot as Berenberg reiterated its ‘buy’ rating on the stock.
“Recent top-line growth trends have been soft, although we do not believe that the group’s competitive advantage has eroded. Therefore, we expect the top line to accelerate back to a sector premium.”
On the downside, medical technology business Smith & Nephew was in the red as it said Olivier Bohuon plans to retire by the end of 2018, after seven years as chief executive officer. The company’s board said it was now beginning a search for a successor.
Centrica was under the cosh as Goldman Sachs cut its price target on the sell-rated stock to 163p from 184p and reduced its earnings per share estimates.
“Our estimates assume an additional £7.5/customer profit margin above what is allowed under the prepayment cap for both electricity and gas to account for higher risks in standard variable tariffs. Under these assumptions the most exposed as a percentage of 2016 EBIT are Centrica(circa25%) and SSE (circa 7%). As result we reduce our EPS estimates between 3-10% for Centrica.”
Budget airline easyJet flew lower amid reports that Air Berlin talks on selling planes to the company may collapse. The company was also hit by a note from Morgan Stanley, which trimmed its forecasts for profits before tax in 2017 and 2018 on the back of the carrier's latest pre-close update.
The broker lowered its estimate for PBT in 2017 from £413m to £409m and for 2018 from £478m to £470m.
Admiral Group (ADM) 1,870.00p 0.97%
Reckitt Benckiser Group (RB.) 6,898.00p 0.91%
Randgold Resources Ltd. (RRS) 7,485.00p 0.81%
Associated British Foods (ABF) 3,294.00p 0.67%
ITV (ITV) 178.60p 0.56%
Fresnillo (FRES) 1,432.00p 0.56%
BHP Billiton (BLT) 1,386.00p 0.54%
Coca-Cola HBC AG (CDI) (CCH) 2,562.00p 0.47%
NMC Health (NMC) 2,850.00p 0.42%
British American Tobacco (BATS) 4,801.00p 0.42%
easyJet (EZJ) 1,232.00p -2.30%
Anglo American (AAL) 1,451.50p -1.92%
Smith & Nephew (SN.) 1,369.00p -1.72%
Sainsbury (J) (SBRY) 238.70p -1.36%
Tesco (TSCO) 185.95p -1.33%
Croda International (CRDA) 3,856.00p -1.26%
Smiths Group (SMIN) 1,595.00p -1.24%
Hammerson (HMSO) 528.00p -1.12%
Paddy Power Betfair (PPB) 7,565.00p -1.11%
Centrica (CNA) 172.70p -0.97%