FTSE 250 movers: Inmarsat comes to earth; Essentra defies the odds

Frank Prenesti Sharecast | 17 Feb, 2017 14:43 | | |

Night tube/underground, London

A target price slash for Inmarsat from UBS sent the shares spiralling on Friday, helping to send the FTSE 250 lower mid-afternoon.

Analysts at the broker hacked their target price to 550p from 810p and downgraded to 'sell' from 'neutral' on expectations the company would stop increasing its dividend payout.

Inmarsat would do so - possibly beginning with its fiscal year 2016 numbers - until the dividend was covered by its equity free cash flow, the broker said.

Markets on the other hand expected it to continue growing it in 2017 at a clip similar to that projected by the consensus of between 4% and 5%.

Shares in power group Drax were also lower after disappointing earnings and a planned review of dividends, which spooked investors.

On the positive side, Essentra shares defied the odds after issuing its fourth profit warning since June and led the risers, up 4% as reported earnings fell.

Segro shares also rose as the company beat analysts' direst post-Brexit predictions with both its full-year earnings per share and net asset value coming in ahead of forecasts, thanks to the robustness of the industrial property markets.

Indeed, the property developer touted the resilience shown by occupier and investor demand for modern warehousing throughout the period, especially from retailers racing to adapt their supply chains to the rapid growth of internet retailing.

Market Movers

FTSE 100 (UKX) 7,293.55 0.21%
FTSE 250 (MCX) 18,649.76 -0.30%
techMARK (TASX) 3,345.10 0.26%

FTSE 250 - Risers

Essentra (ESNT) 439.20p 4.20%
SEGRO (SGRO) 500.50p 3.62%
Indivior (INDV) 379.00p 3.44%
IP Group (IPO) 172.70p 2.43%
Ultra Electronics Holdings (ULE) 1,944.00p 2.05%
PZ Cussons (PZC) 318.30p 1.95%
CLS Holdings (CLI) 1,645.00p 1.92%
Dairy Crest Group (DCG) 574.50p 1.68%
McCarthy & Stone (MCS) 182.90p 1.61%
Polymetal International (POLY) 991.50p 1.54%

FTSE 250 - Fallers

Inmarsat (ISAT) 609.00p -6.38%
Drax Group (DRX) 345.40p -3.79%
Cobham (COB) 110.60p -3.57%
Cairn Energy (CNE) 222.00p -3.10%
Lancashire Holdings Limited (LRE) 717.50p -3.04%
Rank Group (RNK) 202.30p -2.79%
Clarkson (CKN) 2,503.00p -2.61%
Mitchells & Butlers (MAB) 245.60p -2.50%
Hunting (HTG) 566.50p -2.41%
Amec Foster Wheeler (AMFW) 456.20p -2.40%

More news

24 May US close: Markets finish higher as investors mull Fed minutes

Wall Street's main market averages finished in the green on Wednesday, with Treasury yields slipping after the release of the minutes from the Federal Open Market Committee’s May meeting.

24 May Europe close: Stocks tread water, ECB, Fed in focus

European indices finished the session on a mixed note despite, or perhaps on account of, dovish remarks from two top European Central Bank officials.

24 May London close: FTSE wanders to positive close ahead of Fed minutes

Stocks in London wandered to a positive close on Wednesday as investors embraced a raft of corporate news, and as the market looked to this evening's Federal Reserve minutes release.

24 May US crude oil inventories drop more than expected

US crude oil stockpiles drew more quickly than expected last week with analysts pointing to near-record refinery runs as the main culprit.

24 May Thursday preview: UK GDP, Halfords, Qinetiq, B&M

Following a quiet week for UK data, Thursday will allow economists to get their teeth into more granular detail about the consumer backdrop, with the second release of gross domestic product for the first-quarter, plus the index of services and results from companies including Halford, United Utilities and QinetiQ.

24 May Wood Group's Amec takeover under spotlight amid SFO's Unaoil probe

A potential spanner has been thrown in the works of John Wood Group's acquisition of fellow engineer Amec Foster Wheeler after the pair revealed connections to the Unaoil bribery scandal.

24 May ECB's Draghi does not see financial stability risks

Low interest rates and other policy measures are not storing up trouble for the future in the single currency bloc, rather the opposite, so no change in policy guidance is required, the European Central Bank's boss said.

24 May US existing home sales drop more than expected in April

Sales of US existing home sales fell more than expected in April, according to data from the National Association of Realtors.

24 May US house price growth slows a tad in March, FHFA says

House prices in the US continued to rise at a steep pace in March amid continued strong demand and low inventories which more than offset slightly higher mortgage rates.

24 May Strat Aero wins contract with Cyprus Department of Civil Aviation

International aerospace company Strat Aero announced a contract with the Cyprus Department of Civil Aviation on Wednesday, to provide aviation consulting services.