FTSE 250 movers: Inmarsat comes to earth; Essentra defies the odds
(ShareCast News) - 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.
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%