FTSE 100 movers: Persimmon boosted by upgrade; Aviva gains

(Sharecast News) - London's FTSE 100 was 0.2% higher at 7,472.95 in afternoon trade on Friday. Persimmon got a boost after Morgan Stanley double-upgraded shares of the housebuilder to 'overweight' from 'underweight' and hiked the price target to 1,685p from 1,131p.

It noted that Persimmon's niche is affordable homes on a UK-wide basis, and its underweight thesis was partly based on rising affordability risks.

"As mortgage rates fall, and affordability improves, we think the business presents the best leverage to a volume recovery of the stocks under our coverage," MS said.

"Persimmon has most to play for under a near-term upside scenario. The stock benefits from highest operating leverage (volumes down most in 2023 YoY of the 4 stocks under coverage) and largest potential gross margin recovery based on the gross margin embedded in the land bank. Further, the stock is overexposed to the first-time buyer, hard hit in 2023."

Aviva was in the black as JPMorgan Cazenove lifted its price target on the shares to 575p from 545p in a note on the UK life insurance sector.

FTSE 100 - Risers

Flutter Entertainment (CDI) (FLTR) 15,790.00p 3.71% JD Sports Fashion (JD.) 110.60p 2.17% Persimmon (PSN) 1,454.00p 2.04% Pershing Square Holdings Ltd NPV (PSH) 3,600.00p 1.93% CRH (CDI) (CRH) 5,496.00p 1.85% AstraZeneca (AZN) 10,598.00p 1.59% SSE (SSE) 1,759.50p 1.35% Rentokil Initial (RTO) 399.80p 1.34% Smith & Nephew (SN.) 1,112.00p 1.32% Aviva (AV.) 432.60p 1.31%

FTSE 100 - Fallers

Ocado Group (OCDO) 561.80p -1.68% Whitbread (WTB) 3,585.00p -1.38% Kingfisher (KGF) 217.50p -1.05% Pearson (PSON) 948.20p -1.00% Glencore (GLEN) 416.05p -0.91% Associated British Foods (ABF) 2,251.00p -0.84% Marks & Spencer Group (MKS) 251.90p -0.83% Next (NXT) 8,322.00p -0.76% Rolls-Royce Holdings (RR.) 304.20p -0.75% St James's Place (STJ) 633.00p -0.66%