FTSE 100 movers: IHG boosted by JPM upgrade; Convatec recovers
By Michele Maatouk
Date: Friday 26 Sep 2025
(Sharecast News) - London's FTSE 100 was down 0.8% at 9,283.02 in afternoon trade on Friday.
InterContinental Hotels surged to the top of the index after JPMorgan Cazenove double upgraded the stock to 'overweight' from 'underweight' and hiked the price target to 10,400 from 8,500p, saying it expects the narrative to turn more constructive.
JPM noted that the shares have underperformed materially year to date, as a function of IHG's US exposure, FX, and a softer core underlying momentum in part triggered by a weaker revenue per available room (RevPAR) across key geographies of the US, China and UK.
Going forward, with RevPAR expectations now rebased, JPM said it expects the narrative to turn more constructive, gradually pivoting towards IHG's superior earnings visibility, high free cash flow conversion, allowing for circa 5% of shares repurchased annually, and execution.
"With IHG's pipeline at 34% of its existing footprint (high end of its typical 30-35% range) and sound progress in sight on the net unite growth front as a result, we would expect IHG's valuation premium to persist, in line with US peers (solid business structurally with sound earnings visibility and margin upside, scarcity of quality alternatives within Consumer)," it said.
NatWest was also in the black as following a Sky News report that chief operating officer Jen Tippin is leaving the company as chief executive Paul Thwaite's overhaul of leadership continues.
According to Sky, Thwaite has created a new executive role aimed at sharpening its focus on customer service.
James Holian, who has been at the company for over 15 years, has been installed as chief customer and operations officer, according to a memo circulated on Friday and seen by Sky News.
Holian's role will absorb many of the responsibilities of COO Jen Tippin.
Tippin, who was previously in charge of human resources and technology at NatWest, will leave the company.
A NatWest spokesperson told Sky: "We thank Jen for her significant contribution to the group over the last five years. She has been instrumental in helping to drive our transformation and we wish her every success in the future."
Convatec was trading up, having slumped on Thursday after the Trump administration launched an investigation into imports of personal protective equipment, medical consumables, and medical equipment including devices.
FTSE 100 - Risers
InterContinental Hotels Group (IHG) 9,060.00p 3.26%
Babcock International Group (BAB) 1,268.00p 2.76%
NATWEST GROUP (NWG) 518.80p 2.69%
Weir Group (WEIR) 2,702.00p 2.43%
Kingfisher (KGF) 299.50p 2.29%
Convatec Group (CTEC) 226.00p 2.17%
Rentokil Initial (RTO) 367.30p 2.03%
Hikma Pharmaceuticals (HIK) 1,624.00p 2.01%
Aviva (AV.) 681.00p 1.82%
Barclays (BARC) 382.90p 1.74%
FTSE 100 - Fallers
Metlen Energy & Metals (MTLN) 46.95p -1.98%
Spirax Group (SPX) 6,750.00p -1.82%
Rio Tinto (RIO) 4,849.50p -1.35%
Diageo (DGE) 1,746.50p -1.10%
Unilever (ULVR) 4,407.00p -0.94%
Smurfit Westrock (DI) (SWR) 3,177.00p -0.59%
Informa (INF) 898.00p -0.53%
Bunzl (BNZL) 2,348.00p -0.51%
The Sage Group (SGE) 1,074.50p -0.46%
Coca-Cola Europacific Partners (DI) (CCEP) 6,680.00p -0.30
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