2.10pm: Moneysupermarket (LON:MONY).com jumps on RBC upgrade
Moneysupermarket.com powered 6.70% higher today to 193.20p as broker RBC Capital Market said it thinks the 20% de-rating since August represents a good entry point.
Upgrading the stock to outperform from sector perform the broker said the stock is now trading attractively at a free cash flow yield of 10%.
RBC forecast that the group’s core business should benefit from consumers increasingly looking to save on their monthly bills, making it a resilient play during the economic downturn.
RBS (LON:NWG) said it expects the company to deliver on expectations, which amid market downgrades, should drive relative stock outperformance.
The broker also upped its price target to 250p from 230p.
11.30am: Electricity generators fall on revenue cap reports
Shares in Centrica (LON:CNA), Drax and SSE (LON:SSE) fell sharply today following reports that ministers are considering a "revenue cap" for renewable power generators which has been likened to a windfall tax.
The Financial Times claimed legislation to impose a revenue cap could be laid as soon as this week with a starting point for the cap of around £50-60/MWh.
In a separate article, the BBC reported that industry and government officials would meet today with potential for the cap to be introduced as early this week.
The BBC said the plans could hit the profits of energy companies including SSE, Scottish Power, RWE and EDF (EPA:EDF) Energy.
Shares in Centrica PLC fell 2.73% to 69p, Drax Group (LON:DRX) PLC fell 4.55% to 535p and SSE PLC fell 0.4% to 1494p.
10.27am: Intercede jumps on acquisition and trading update
Shares in Intercede Group PLC surged 39% to 52.9p as it reported that revenues for the six months ended 30 September 2022 had risen 23% to £6.1mln year-on-year in line with management expectations.
The group had cash reserves of £10.0mln as at 30 September 2022 compared to £7.8mln as at 31 March 2022 reflecting positive operating cash flow and continued tight cost control as budgeted for full year 2023.
The company also announced the acquisition of Authlogics for an initial £2.5mln plus a further deferred conditional and staged earnout payment of up to £3mln.
The deal is expected to be earnings enhancing in the financial year commencing 1 April 2023.
8.35am: Evgen Pharma soars after licensing deal
Evgen Pharma PLC saw its shares surge nearly 44% higher to 4.10p in early trading after the firm said it has licensed the global rights for in its lead asset SFX-01 in neurodevelopmental disorders and schizophrenia to Swiss group Stalicla in a deal worth up to US$160.5mln if all milestones are passed.
Stalicla, which specialises in identifying specific phenotypes of autism spectrum disorder (ASD), will pay US$0.5mln upfront. Other payment triggers include the completion of an upcoming phase 1 trial and the receipt of IND status in the US.
All the US$160.5mln becomes due on the first neurodevelopmental disorder indication with Evgen to receive royalties in the low to medium double digits on any sales.
READ: Evgen licenses neuro disorder rights of SFX-01 to autism specialist
08.30am: DS Smith jumps after raising guidance
DS Smith PLC shares rose 10% in opening deals after the firm pleased the market as it raised its profit guidance for the year.
The packaging company said it expects adjusted operating profit of £400mln in the six months to October 31, 2022, up 45% from £276mln a year earlier.
For the full year, its performance is "expected to be ahead of our previous expectations" the company said.
"I am very pleased with the performance in the year to date and the momentum in our business. We remain focussed on delivering for our customers and managing our costs in an inflationary environment," DS Smith chief executive Miles Roberts said in a statement.