FTSE 100 movers: Smurfit Westrock up on JPM note; water firms give back gains

(Sharecast News) - London's FTSE 100 was up 0.3% at 8,250.61 in afternoon trade on Friday. Smurfit Westrock was the top gainer on the index as JPMorgan Cazenove initiated coverage of the shares with an 'overweight' rating and $66 price target, adding the stock to its 'Analyst Focus List'.

"In our view, the cycle is at the early stages of a recovery with current prices still below through the cycle levels (especially once marginal producer margins are considered)," JPM said.

The bank also said it sees significant scope to improve the business - beyond announced synergies - through integration and targeted mill improvement.

"Despite this, Smurfit WestRock is trading at a significant, unwarranted discount to US peers and we would expect this valuation gap to close once high return on invested capital investments are concluded/better understood," it said.

JPM said its discounted cash flow-backed valuation suggests around 45% upside, which is the highest in its sector, and therefore it flagged Smurfit WestRock as its "top pick" in the sector.

On the downside, United Utilities and Severn Trent were both on the back foot, having gained sharply on Thursday.

FTSE 100 - Risers

Smurfit Westrock (DI) (SWR) 3,619.00p 2.75% Rightmove (RMV) 574.00p 2.54% Vistry Group (VTY) 1,333.00p 1.37% AstraZeneca (AZN) 12,250.00p 1.24% CRH (CDI) (CRH) 6,160.00p 1.12% Next (NXT) 9,004.00p 1.05% Frasers Group (FRAS) 860.00p 1.00% BP (BP.) 456.25p 0.98% Marks & Spencer Group (MKS) 306.40p 0.96% GSK (GSK) 1,518.00p 0.86%

FTSE 100 - Fallers

United Utilities Group (UU.) 1,055.00p -3.56% International Consolidated Airlines Group SA (CDI) (IAG) 172.80p -2.87% Schroders (SDR) 379.40p -2.22% Severn Trent (SVT) 2,655.00p -2.21% Prudential (PRU) 727.60p -1.65% Land Securities Group (LAND) 636.50p -1.62% Rentokil Initial (RTO) 468.20p -1.31% Scottish Mortgage Inv Trust (SMT) 893.80p -1.22% M&G (MNG) 208.20p -1.19% Rolls-Royce Holdings (RR.) 448.10p -1.13%