MARKET REPORT: Moonpig shares hit over Christmas delivery fears

Shares in Moonpig plummeted after strikes fueled fears that Christmas cards and presents could get stuck in the mail.

With Royal Mail staff set to strike for another three days this month, including Christmas Eve, City analysts warned Moonpig could be hit hard by the industrial action alongside rising interest rates and falling consumer spending.

The company allows customers to design their own cards on its website. Moonpig then sends them to the recipient on behalf of the customer, usually via Royal Mail. But shares fell 5.8 percent, or 6.9 pence, to 112.5 pence, as investors feared the business model had stalled.

Jefferies cut his price target on the stock from 380 pence to 290 pence, while Davy analyst David Reynolds warned the stock could come under pressure during the holiday season.

He said: ‘Moonpig is undoubtedly affected by the Royal Mail strikes. The business model must get on everyone’s nerves.’

Last week it cut its revenue forecast from £350m to £320m for the financial year end.

The FTSE 100 fell 0.1 percent, or 6.96 points, to 7495.93 and the FTSE 250 fell 0.3 percent, or 48.37 points, to 19,037.92, as inflation in the UK fell in November fell to 10.7 percent, from 11.1 percent in October.

The latest figures come as the Bank of England prepares to raise interest rates by 0.5 percent.

AJ Bell financial analyst Danni Hewson warned that the inflation numbers will do little to convince striking workers to accept wage deals that come no close to covering the rising cost of living.

AstraZeneca received a dose of good news after Jefferies raised the pharmaceutical giant’s price target from 9,800 pence to 10,500p.

Stock Watch – Cohort

Cohort, a maker of submarine sonar and marine communications systems, celebrated its order book reaching a record high of £304.2 million in the six months to October – up from £291 million in April.

Sales rose 29 per cent to £77.5 million, supported by the supply of equipment to the Ministry of Defence, such as hearing protection for armored fighting vehicles. Profit of £1.1 million fluctuated from a loss of £1.7 million years earlier. The interim dividend was increased by 10 pence to 4.25 pence. Shares rose 4.9 pence, or 20 pence, to 430 pence.

It was up 0.7 percent, or 74p, to 11,400p. As part of a plan to shake up its broadband prices, BT network unit Openreach said it will offer cheaper rates to internet providers such as Sky and TalkTalk to win more customers for its fiber network.

But rival Virgin Media O2 called on regulators to scrutinize the plans, with boss Lutz Schuler saying the government and Ofcom must “protect fair competition” and ensure that Openreach “does not use its market power and dominance” to sell out providers. from switching to other networks.

Shares of the telecom giant rose 2.1 percent, or 2.35 pence, to 116.25 pence.

Taylor Wimpey plunged into the red after JP Morgan downgraded the homebuilder’s rating from “overweight” to “neutral” and cut its price target from 170 pence to 110 pence.

The estate agent warned UK house prices could fall by 10 percent due to a slowdown in demand. Shares fell 1.9 percent, or 1.95 pence, to 102.25 pence.

Other homebuilders who fell were Barratt (-1.3 percent, or 5.4p, to 403.6p), Berkeley (-0.3 percent, or 12p, to 3814p), Vistry (-0.9 percent, or 5, 5p, to 616p), and Redrow (down 3.3 percent, or 15.4 pence, to 457 pence).

The second tier’s biggest faller, travel giant Tui, said it wanted to raise up to £1.3bn and return some of the Covid rescue money received from Germany.

The Anglo-German company plans to fully repay money from the Berlin Economic Stabilization Fund and a bond loan.

Tui’s turnover rose 250 per cent to £14.2bn for the year to September – close to pre-pandemic levels – while losses fell to £182.5m from £2.1bn a year earlier. Shares fell 8 percent, or 11.8 pence, to 135.85 pence.

There was also bad news for Watches of Switzerland, despite sales rising 31 per cent to £765 million in the six months to October.

The company behind brands such as Rolex and Patek Philippe opened 20 showrooms in the six months to October and refurbished seven others in the UK, US and Europe, at a cost of £27 million.

It said there were some issues with cash flow due to increased investments. Shares fell 5.3 percent, or 51p, to 908p.