Property groups tumble as Goldman/JPMorgan slash price targets
Shares of Land Securities and British Land fell today after the two real estate groups were downgraded by Goldman Sachs (NYSE:GS), while JP Morgan lowered its price targets on both companies.
Goldman Sachs downgraded British Land to neutral long and cut its price
target to 410p from 580p, while JPMorgan reduced its price target to 530p from 700p but retained its overweight rating.
On Land Securities, Goldman Sachs lowered its rating to sell from neutral and reduced its price target to 500p from 650p, while JPMorgan retained its neutral rating but with a lower price target of 650p from 900p.
Land Securities fell 2.7% and British Land fell 0.7%.
Capita boosted by a double dose of good news
Shares of Capita PLC (LSE:CPI) (Capita PLC (LSE:CPI)) rose after announcing a contract extension with Barnet Council and the sale of its subsidiary Pay360 Ltd to Access PaySuite.
Shares of the outsourcing services group rose 6.6% after securing the extension of the contract with the North London council worth £42.7million, albeit with indexation and potential additional work, it could be worth up to £57million.
Separately, Capita said it had agreed to divest Pay360 to the Access Group division for £150 million on a cash-and-debt-free basis.
Capita said the sale will help reduce its debt, provide additional liquidity and allow it to improve its digital offerings for customers and build a more focused and sustainable business over the long term.
Royal Mail drops after FedEx warning (NYSE:FDX)
Shares of Royal Mail PLC (LSE:RMG) fell today following a profit warning from its US peer FedEx (NYSE:FDX) which withdrew its full year guidance after warning that first-quarter earnings would miss estimates as the slowdown in global demand accelerates.
He cited “macroeconomic weakness” in Asia and “services challenges” in Europe.
Investors said the challenges in the industry would be the same for Royal Mail, which also faces the prospect of further industrial action as employees strike for higher wages.
Royal Mail workers represented by the Communication Workers Union (CWU) had planned a strike for September 9, 2022, but now plan to strike on September 30 and October 1, 2022.
The shares fell 10.5% to 223.5p.
EU drug approvals boost AstraZeneca
AstraZeneca PLC (LSE:AZN) was a rare climber in the FTSE 100 after announcing today that it had received two recommendations for drug approval in the EU, while a drug for paroxysmal nocturnal haemoglobinuria reached its primary endpoint in a phase three trial.
The group specified its drug Beyfortus, which it is developing with Sanofi. for the prevention of lower respiratory tract diseases in newborns and infants has been recommended for marketing authorization in the European Union
Meanwhile, AstraZeneca’s Evusheld Covid antibody treatment has been recommended for marketing authorization in the EU for adults with the virus at risk of progressing to severe disease.
The company explained that phase III treatment data showed a reduced risk of severe Covid or death.
Shares rose 1.7% after the news.