FTSE 100 movers: Beazley follows Hiscox higher; B&M in the black

London’s FTSE 100 was flat at 8,207.90 in afternoon trade on Monday.

Insurer Beazley was the top gainer as FTSE 250 peer Hiscox surged on a report suggesting that two rivals are considering takeover bids for the insurer. According to Insurance Insider, Japan’s Sompo and Italy’s Generali are circling Hiscox.

B&M European Retail Value was also in the black as Canaccord Genuity initiated coverage on the shares at ‘buy’ with a 600p price target. It said it sees significant long-term store expansion potential in the UK and France combined with LFL growth and scope for further special dividends.

In a broader note in which Canaccord initiated coverage on nine other multi-channel retail stocks, it said B&M was a pandemic winner, with significant growth in both sales and profits compared to pre-pandemic levels.

"However, the group is also set to be a post-pandemic winner, with FY24 profits eclipsing the highs seen in FY21. A strong focus on price, availability and retail standards in a low-cost operating environment has resonated with customers as the cost-of-living crisis has eaten into disposable incomes.

"The growth of the discount channel has been long-established, and not just as a result of the income squeeze in recent years. The channel is set for further growth, leaving the Group well-positioned to grow market share.

"While there may be some near-term LFL volatility, B&M has a significant long-term rollout opportunity in the UK and France, which should deliver significantly increased levels of sales, profits and, importantly, cash.

"A strong balance sheet, with FY25E leverage forecast at 1.1x and a clear capital allocation policy, offers scope for further shareholder returns in the form of special dividends with over £1.25bn already returned in this form since FY20."

FTSE 100 - Risers

Beazley (BEZ) 684.50p 3.56%
B&M European Value Retail S.A. (DI) (BME) 455.10p 2.62%
Coca-Cola HBC AG (CDI) (CCH) 2,738.00p 2.24%
International Consolidated Airlines Group SA (CDI) (IAG) 176.25p 2.06%
Prudential (PRU) 720.80p 1.98%
Rolls-Royce Holdings (RR.) 463.50p 1.96%
CRH (CDI) (CRH) 5,794.00p 1.90%
NATWEST GROUP (NWG) 330.90p 1.88%
Convatec Group (CTEC) 243.40p 1.84%
Lloyds Banking Group (LLOY) 59.24p 1.65%

FTSE 100 - Fallers

Fresnillo (FRES) 580.00p -2.19%
Schroders (SDR) 376.20p -1.47%
Sage Group (SGE) 1,071.00p -1.24%
LondonMetric Property (LMP) 191.30p -1.19%
Anglo American (AAL) 2,420.00p -1.08%
Sainsbury (J) (SBRY) 258.40p -1.07%
BP (BP.) 477.60p -0.97%
SEGRO (SGRO) 905.20p -0.81%
SSE (SSE) 1,839.00p -0.81%
Intermediate Capital Group (ICG) 2,224.00p -0.80%