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On Thursday, London’s showed a positive trend, increasing by 2.1% to reach 7,682 in afternoon trade. The rise was led by the mining sector, as JPMorgan Cazenove issued an upbeat note on the industry. The bank upgraded its rating for Rio Tinto (NYSE:) from ‘underweight’ to ‘neutral’, and also raised its price target for Anglo American (LON:) to 2,900p from 2,650p, maintaining it as their “top pick” in the sector, due to its “stronger value unlock potential.”
Flutter Entertainment also saw a boost following a broker note from HSBC, which increased its price target on the shares to 18,100p from 17,900p. HSBC retained its ‘buy’ recommendation on the shares, stating that the current valuation does not fully reflect the underlying pace of growth. “We are reassured by the underlying growth at H1, and think that this suggests our forecasts for this year and next are well underpinned. This growth is not reflected in the valuation of the group, as we see it,” HSBC commented.
However, not all companies shared in the market’s upward trajectory. Ladbrokes (LON:) owner Entain experienced a drop after HSBC cut its price target on the ‘buy’ rated shares to 1,540p from 1,830p. The bank cited a less positive outlook on Entain’s underlying growth as the reason for the adjustment. “A fresh look at Entain’s underlying growth casts it in a less positive light than before, and so we cut our target price,” HSBC stated.
Additionally, Melrose Industries and Intertek Group (LON:) lost ground as they traded without entitlement to their dividend. Despite these few downturns, overall, the FTSE 100 saw gains, with Anglo American, Rio Tinto, and Glencore (OTC:) among the top risers. Conversely, Entain, Kingfisher (LON:), and InterContinental Hotels Group were among the top fallers.
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