FTSE 250 movers: Travel firms fly lower, Intu buoyed by bid

Renishaw was sharply lower following a downgrade from Stifel, where the Wotton-under-Edge engineer's shares were given a price target of 3,600p.

Plastics maker Essentra softened as like-for-like revenues came out flat in the third quarter, or up 1.5% when adjusting for the closure of the Newport cartons site, with the packaging division returning to growth. The company said the outlook for the full year remained unchanged as the quarterly results reflected the benefits of the strategic actions it had taken, as well as the "increasing stability" across the company.

Travel companies and airlines featured heavily among the fallers, with On The Beach Group, Thomas Cook and airline Wizz Air all dropping after analysts at Mainfirst cut expectations for European airlines in 2019 across the board following a difficult summer for travel outfits.

"We expect a less dramatic picture for summer 2019 as the industry (hopefully) adapts to the higher fuel price environment, enabling a better pass through of the cost burden. Still, the risk remains that airport slot protection and market share wins are prioritised over rationality and profits in the short-term," Mainfirst said in a note to clients.

Shopping centre owner Intu Properties surged almost 11% after confirming it had received a possible offer from a consortium led by one of its senior to directors to buy the company at 210p a share, valuing it at £2.8bn. Intu's deputy chairman John Whittaker's Peel Group, which already holds around 27% of the firm, has teamed up with Saudi conglomerate Olayan Group and Canary Wharf owner Brookfield Property and will conduct due diligence before confirming whether or not they will make a firm offer.

Following the bid for Intu, fellow real estate investor Great Portland Estates made gains as Liberum reiterated a 'hold' rating and target price of 705p in a note researching the UK real estate market. "A gradual slide in forecasts does little to merit a re-rating, but equity valuations already price much of this pressure and a potential bid for Intu may provide some support to the sector."

Dechra Pharmaceuticals was on the front foot as it announced the acquisition of Brazil's Venco for BRL185m (£37.8m) and it said its performance in the first quarter was in line with management's expectations. The acquisition will be financed from Dechra's existing cash and borrowing facilities and is due to complete next month.

Intelectual property business IP Group rallied on the back of an initiation at 'buy' with a target price of 160p at Berenberg, where analysts noted that 2017 had been a "transformational" year for the company.

The analysts hailed the acquisition of Touchstone Innovations as diversifying IP Group's portfolio, adding assets, co-investor relationships and further sector competence, while also acknowledging the importance of adding a third region to its university footprint.

Market Movers

FTSE 250 (MCX) 18,828.74 -0.70%

FTSE 250 - Risers

Intu Properties (INTU) 196.65p 10.66%
Dechra Pharmaceuticals (DPH) 2,318.00p 7.31%
Great Portland Estates (GPOR) 705.40p 2.22%
Ferrexpo (FXPO) 220.60p 2.04%
Fidelity China Special Situations (FCSS) 191.64p 1.94%
IP Group (IPO) 112.50p 1.72%
Kaz Minerals (KAZ) 486.20p 1.72%
CYBG (CYBG) 268.80p 1.66%
F&C Commercial Property Trust Ltd. (FCPT) 137.00p 1.63%
Avast (AVST) 289.35p 1.53%

FTSE 250 - Fallers

Renishaw (RSW) 3,848.00p -8.21%
Auto Trader Group (AUTO) 382.80p -7.54%
Essentra (ESNT) 358.80p -7.00%
Elementis (ELM) 206.40p -5.93%
On The Beach Group (OTB) 420.00p -5.62%
Thomas Cook Group (TCG) 39.88p -5.36%
Weir Group (WEIR) 1,550.00p -4.50%
Vesuvius (VSVS) 534.00p -4.47%
Wizz Air Holdings (WIZZ) 2,359.00p -4.03%
Spire Healthcare Group (SPI) 107.81p -4.00%