LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Friday.
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FTSE 100 - WINNERS
Meggitt, up 1.2%. UBS has upgraded the engineering company to Buy, from Neutral, and increased its price target to 530.00 pence, from 520.00p, saying that the company's 11% decline relative to the FTSE 100 since mid-February is disproportionate. "The stock is now trading at the bottom of the range of its commercial peers, which we believe is overdone on both relative and absolute basis and the stock offers good value at these levels," UBS says.
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FTSE 100 - LOSERS
Burberry, down 2.4%. The fashion retailer's shares are the biggest faller in the blue-chip index after Merrill Lynch downgraded it to Neutral, from Buy, and HSBC lowered its price target to 1,820.00 pence, from 1,850.00p.
William Hill, down 0.8%. The bookmaker is again a heavy faller as it continues to be hit by UK Chancellor of the Exchequer George Osborne's announcement that the government will raise duty on gambling machines to 25%, from the current 20%, starting from March 1, 2015.
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FTSE 250 - WINNERS
Partnership Assurance, up 4.3%. The company is the index's leading gainer as it takes back a small fraction of its recent heavy declines. The group, along with other annuity providers, has seen its shares plummet since Wednesday after the UK Chancellor allowed individuals more control of their pension pots and made it possible not to take an annuity without being levied with punitive tax rates.
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FTSE 250 - LOSERS
Hikma Pharmaceuticals, down 3.6%. Jefferies has downgraded the company to Hold, from Buy, saying that, following a "bumper" 2013 and a sharp share price increase so far in 2014, there is now the need to re-evaluate the stock. The company's share price rose by 58% in 2013 and has already jumped around 35% in 2014, and currently trades at around 1.5 times the sector average. However, the investment bank now believes that Hikma's growth profile looks less attractive than in recent times, and its "valuation appears stretched". Nevertheless, Jefferies has increased its price target on the stock to 1,500.00 pence, from 1,250.00p, as it continues to view Hikma as a quality business.
Ophir Energy, down 1.6%. The oil and gas exploration company is a big loser on the back of a raft of negative price target revisions. Deutsche Bank has cut its price target to 330.00 pence from 400.00p, Canaccord has lowered it to 300.00p, from 315.00p, while HSBC has lowered it to 450.00p, from 500.00p. Meanwhile, Credit Suisse has decreased its target to 346.00p, from 392.00p, and removed the firm from its small- and mid-cap focus list.
Ladbrokes, down 1.1%. Like William Hill, the betting company is still being knocked by Osborne's Budget.
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AIM - WINNERS
Formation Group, up 24%. The firm said an agreement has been reached between Julius Properties and FTSE 250-listed housebuilder Redrow over a title issue relating to a mixed use development near Aldgate East tube station, London. The dispute had cast doubt upon Julius' ability to repay JV Finance Ventures Ltd's investment into the site. Formation holds a 36.9% stake in JV Finance Ventures.
BrainJuicer, up 11%. The online market research agency reported an increase in profit and revenue for the recent year, following a "flat" performance in 2012. The company posted pretax profit of GBP3.6 million for 2013, up from GBP1.5 million in 2012, as revenue rose 17% to GBP24.5 million from GBP20.8 million. On the back of the improved performance, the firm said it plans to pay a special dividend of 12.0 pence per share. The firm also increased its final dividend by 33% to 3.0 pence per share, from 2.25 pence, making a total dividend of 3.9 pence, up from 3.1 pence a year earlier.
Minoan Group, up 8.7%. The travel company said the Local Municipality of Sitia in Crete has reaffirmed its support for its project on the Mediterranean island. It is planning a luxury holiday resort on a 26 square kilometre site at Cavo Sidero in Crete, comprising holiday villages, golf courses, a marina, and a conference centre.
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AIM - LOSERS
2ergo, off 45%. The company is the biggest faller on AIM after Eagle Eye Solutions Group said it will buy 2ergo's mobile coupon and loyalty business for GBP4.5 million in cash and shares. 2ergo will now become an investment company focusing initially on the TMT sector, and will change its company name to Broca PLC.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
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