MARKET REPORT: Protein drink company scores higher on the assessment of fresh products
Shares of protein drink maker Applied Nutrition got a boost yesterday after Deutsche Bank analysts said investors should ‘pile on’ the shares.
The company, founded by Liverpool scaffolder Thomas Ryder, lost weight as it fell after its market debut in October. But it got a boost from Deutsche analysts.
The German bank, whose Numis UK business was the sponsor of the Applied Nutrition offer, launched the stock with a buy rating and a price target of 180p.
Deutsche emphasized that the company grew rapidly in its first decade by leveraging manufacturing and innovation capabilities.
And its focus on innovation is a clear differentiator, allowing the company to grow faster than the wider sports nutrition market, which is estimated to be worth £189 billion globally.
After hitting 140p on October 24, the shares went on a rollercoaster ride, reaching 150p on the first day but later falling to a low of 135p before swinging yesterday at 0.7 percent, or 1p, closing higher at 136p.
Applied Nutrition, founded by Liverpool scaffolder Thomas Ryder (pictured), is losing weight as it fell after its market debut in October
AIM-listed Science in Sport, which was hoping for a revaluation based on the Applied Nutrition float, was steady at 26.5p.
There was no rise for the FTSE 100, which closed 0.3 percent, or 23.60 points, lower at 8335.81, although the FTSE 250 managed to gain 0.5 percent, or 112.41 points to 21,005.15.
The broker’s comments supported British Airways owner IAG, which rose 4.1 percent (or 10.7p) to 175.1p, as analysts at JP Morgan said it was their most compelling overweight in the airline sector and it stock to the ‘analyst focus list’.
Elsewhere, soft drink bottler Coca-Cola HBC added 1.3 per cent, or 36p, to 2854p after analysts at BNP Exane upgraded its rating to ‘outperform’, while packaging company Bunzl gained 0.3 per cent, or 10p, to 3610p, despite being was downgraded to ‘hold’ by analysts at HSBC.
Legal & General topped the FTSE 100 gainers, up 6 per cent, or 13.4p, to 236.3, as the insurer maintained full-year profit expectations and hinted at greater returns for shareholders.
Meanwhile, Vistry enjoyed a dead cat bounce, gaining 4.9 per cent, or 30.5p, to 658.5p, even as the housebuilder’s demotion from the FTSE 100 was confirmed.
Next month, retailers Frasers and B&M will join the FTSE 250, with Games Workshop, asset manager St James’ Place and investment trust Alliance Witan replacing them.
Victrex was the biggest gainer on the FTSE 250 – up 10 percent, or 100p, to 1104p – thanks to an upgrade to ‘buy’ from analysts at Jefferies.
But the trading news weighed on Zigup, the former rescued Northgate commercial vehicle rental group, which fell 12.9 percent (or 49.5 cents) to 333.5 cents after a decline in first-half profit and sales.
Among small caps, Biome fell 14.3 percent, or 0.75 cents, to 4.5 cents, as the bioplastics company warned of full-year profitability.
But miner Tungsten West rose 16.7 percent, or 0.5 cents, to 3.5 cents after appointing Stephen Harrison as non-executive chairman.
And Fusion Antibodies gained 39.3 per cent, or 1.65p, to 5.85p after news was merged that a grant application had been approved.
Stock watch – Scancell
Scancell rose 3.9 percent, or 0.5 cents, to 13.5 cents after the biotech firm struck a deal with US company Genmab worth up to £497 million.
The agreement grants global rights to develop and commercialize an antibody from Scancell’s Glymab platform.
It includes amounts related to development, regulatory and commercial purposes, and follows an evaluation that showed the antibody can generate highly tumor-specific antibodies for therapeutic development.
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