FTSE 100 movers: IHG boosted by upgrade; L&G in the red

London’s FTSE 100 was down 0.6% at 8,257.76 in afternoon trade on Wednesday.

InterContinental Hotels was the top gainer after Goldman Sachs upgraded the shares to ‘buy’ from ‘neutral’ as it reshuffled its European-listed hotel ratings.

The bank said IHG’s enhanced long-term earnings per share growth algorithm, improved enterprise platform and optionality on ancillary revenue streams merits a narrower valuation discount to key US peers.

"We think the stock’s de-rating over the last six months creates an attractive entry-point into a high quality, asset-light hotel franchise platform offering more than 15% EPS CAGR (2023-28E) a 7% shareholder return per annum and one of the highest returns on invested capital in our leisure coverage (circa 46% in 2025E)," GS said.

Reckitt Benckiser was also higher following a report that it has started early discussions with some of the potential suitors for its homecare assets, which could fetch more than £6bn in a deal.

Bloomberg cited people familiar with the matter as saying that the consumer goods giant is working with Morgan Stanley for the brands including air freshener Airwick and Cillit Bang cleaners.

Mostly financial investors as well as some consumer companies have shown interest in the assets, the sources said, adding that a formal sale process is likely to kick off within months and be completed in 2025.

Legal & General fell after saying it had sold UK house builder CALA Group for £1.35bn to Ferguson Bidco, an entity owned by funds managed by Sixth Street Partners and Patron Capital.

The insurer said it would receive cash proceeds of £1.16bn, of which £500m will be paid at closing with the remaining consideration being paid over the next five years.

FTSE 100 - Risers

InterContinental Hotels Group (IHG) 7,978.00p 1.45%
Reckitt Benckiser Group (RKT) 4,675.00p 1.41%
Kingfisher (KGF) 325.80p 0.90%
Haleon (HLN) 400.00p 0.76%
Standard Chartered (STAN) 774.80p 0.68%
Fresnillo (FRES) 572.00p 0.53%
Centrica (CNA) 117.45p 0.43%
Smith (DS) (SMDS) 480.40p 0.42%
Entain (ENT) 742.40p 0.32%
BAE Systems (BA.) 1,277.00p 0.31%

FTSE 100 - Fallers

Diploma (DPLM) 4,522.00p -2.37%
Legal & General Group (LGEN) 223.10p -2.32%
Convatec Group (CTEC) 227.60p -1.90%
JD Sports Fashion (JD.) 156.70p -1.88%
Rentokil Initial (RTO) 374.70p -1.78%
Phoenix Group Holdings (PHNX) 545.00p -1.62%
NATWEST GROUP (NWG) 336.20p -1.47%
Next (NXT) 10,365.00p -1.43%
Spirax Group (SPX) 7,270.00p -1.42%
DCC (CDI) (DCC) 5,225.00p -1.42%