FTSE 100 movers: Admiral boosted by upgrade; Frasers under the cosh

(Sharecast News) - London's FTSE 100 was flat at 8,333.55 in afternoon trade on Thursday. Admiral was the top gainer on the index after an upgrade to 'buy' from 'hold' at Deutsche Bank, which said it was becoming more positive on the wider UK motor insurance space, particularly for those that are larger players such as Admiral, and those that are more disciplined.

"With tailwinds to come through to earnings over 2024-2026 from UK pricing of 2023, along with improvements in the group's international businesses and the addition of the RSA policies in home and pet, we view the group as strongly positioned to keep growing the top and bottom lines," it said.

"Trading on a 2025 price-to-earnings of circa 13x versus a historic average closer to the circa 16x, we see re-rating potential."

Diageo also fizzed higher as Jefferies upgraded shares of the drinks maker to 'buy' from 'hold' and lifted the price target to 2,800p from 2,300p.

"Companies do not change overnight; however, we think that Diageo will start to look different as confidence in spirits growth increases and under a new, heavyweight CFO, where we see a renewed focus on growth, profit and cash," it said.

Jefferies said FY25 should be a trough year with recovery from FY26 onwards.

Vistry gained after saying it had agreed to build nearly 950 new homes near London's Olympic Park as part of a 50:50 joint venture with the London Legacy Development Corporation.

Frasers Group was under the cosh as it lowered the upper end of its full-year profit forecasts, citing weaker consumer confidence leading up to and after the government's recent Budget and a tougher trading environment.

The company now expects adjusted pre-tax profit for the 2024/25 fiscal year of £550m to £600m down from prior guidance of £575m to £625m. Interim profits were down 1.5% to £299.1m on the same basis.

DS Smith was also in the red as it posted a slide in half-year earnings, hit by "challenging" market conditions, including weaker prices and higher costs.

The paper and packaging firm said revenues in the six months to 31 October fell 4% to £3.4bn, while adjusted operating profits slumped 39% to £221m. Like-for-like box volumes grew by 2%, however.

FTSE 100 - Risers

Admiral Group (ADM) 2,698.00p 2.82% Diageo (DGE) 2,407.50p 2.82% Whitbread (WTB) 2,943.00p 2.54% Hiscox Limited (DI) (HSX) 1,109.00p 2.12% BT Group (BT.A) 158.45p 1.96% Vistry Group (VTY) 670.00p 1.75% Intertek Group (ITRK) 4,832.00p 1.60% Centrica (CNA) 130.40p 1.52% Barclays (BARC) 266.05p 1.51% International Consolidated Airlines Group SA (CDI) (IAG) 279.20p 1.49%

FTSE 100 - Fallers

Frasers Group (FRAS) 667.00p -9.99% British Land Company (BLND) 371.00p -4.43% Associated British Foods (ABF) 2,245.00p -2.56% Melrose Industries (MRO) 573.20p -2.38% SEGRO (SGRO) 758.20p -2.14% LondonMetric Property (LMP) 188.80p -1.92% Intermediate Capital Group (ICG) 2,158.00p -1.91% Diploma (DPLM) 4,508.00p -1.83% Smith (DS) (SMDS) 567.00p -1.73% Rolls-Royce Holdings (RR.) 585.00p -1.65%