SMALL-CAP WINNERS & LOSERS: Severfield says pipeline conversion slow

Wed, 06th Sep 2023 10:21

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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Halfords Group PLC, up 2.3% at 191 pence, 12-month range 123.9p-234.8p. Broker Peel Hunt raises the motoring retailer's stock to 'buy' from 'add', raising the price target to 275p from 250p previously.

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SMALL-CAP - LOSERS

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Severfield PLC, down 4.0% at 65.1p, 12-month range 46.65p-76.2p. The structural steel company warns of ongoing delays in converting its pipeline of opportunities. It blames this on persistent high inflation and rising interest rates, as clients wait for economic stability. Notes these factors informed Sunset Studios' decision to pause construction on its planned new film production base in Hertfordshire, and Severfield removed that contract from its order book in July. Still, Severfield says trading in the first five months of the year is in line with its expectations, and it expects to deliver further progress.

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Asos PLC, down 3.6% at 425.1p, 12-month range 320.33p-1,015p. Goldman Sachs cuts the target price for the online clothing retailer's stock to 515p from 600p previously. The investment bank maintains its 'neutral' rating on Asos shares.

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By Elizabeth Winter, Alliance News senior markets reporter

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