FTSE 100 movers: IAG flies higher on upgrade; L&G drops on results
By Michele Maatouk
Date: Wednesday 06 Mar 2024
(Sharecast News) - London's FTSE 100 was 0.3% higher at 7,671.99 in afternoon trade on Wednesday.
BA and Iberia owner IAG flew higher as JPMorgan Cazenove double upgraded the shares to 'overweight' from 'underweight' and lifted the price target to €2.50 from €1.45.
JPM said that previously, it had concerns that high capacity growth in 2024 would lead to pricing and earnings pressure.
"Whilst the shares have underperformed since our UW call, in our view, it's clear from the 2023 results that earnings are unlikely to decline this year," it said. "We now see an opportunity for IAG to outperform consensus expectations despite the start of a re-investment cycle (higher opex/capex), which should then benefit longer-term earnings."
Convatec was also in the black as it lifted its forecasts for medium-term organic growth after a strong performance in 2023 which saw a rise in margins and double-digit profit growth.
Legal & General fell after it posted lower-than-expected operating profits last year amid tough market conditions. Operating profit came in at a flat £1.67bn against company-compiled forecasts of £1.75bn.
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 149.35p 5.29%
Convatec Group (CTEC) 265.20p 5.07%
Anglo American (AAL) 1,769.80p 3.87%
Weir Group (WEIR) 1,923.50p 2.31%
London Stock Exchange Group (LSEG) 9,242.00p 2.21%
Endeavour Mining (EDV) 1,457.00p 2.17%
Centrica (CNA) 130.10p 1.84%
Smith & Nephew (SN.) 1,067.50p 1.81%
BP (BP.) 479.35p 1.79%
Rio Tinto (RIO) 5,105.00p 1.57%
FTSE 100 - Fallers
Fresnillo (FRES) 472.80p -4.23%
Ocado Group (OCDO) 434.00p -2.32%
Hikma Pharmaceuticals (HIK) 1,856.00p -2.24%
Reckitt Benckiser Group (RKT) 5,024.00p -1.76%
Smurfit Kappa Group (CDI) (SKG) 3,284.00p -1.62%
Pearson (PSON) 1,010.00p -1.46%
Diageo (DGE) 2,884.50p -1.32%
Legal & General Group (LGEN) 242.20p -1.30%
Antofagasta (ANTO) 1,754.50p -1.29%
Persimmon (PSN) 1,368.00p -1.23%
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