FTSE 100 movers: Anglo American boosted by upgrade; BAE hit by downgrade

(Sharecast News) - London's FTSE 100 was down 0.2% at 8,265.19 in afternoon trade on Friday. Anglo American was the top gainer on the index after Jefferies upgraded the shares to 'buy' from 'hold' and lifted its price target to 2,850p from 2,500p following the recent share price decline.

"There are still risks related to the timing and value capture associated with Anglo's planned restructuring, especially in the case of De Beers, but we see value and potential positive catalysts in Anglo's shares following the pullback from this past summer's highs," Jefferies said.

It said Anglo will be well positioned to benefit from a rising copper price and a resilient iron ore price after its restructuring is complete.

"It should have a strong balance sheet and robust cash flow, enabling it to deliver large capital returns."

IMI was also in the black after an upgrade to 'buy' at Bank of America Merrill Lynch.

Defence firm BAE Systems fell, however, as BofA ML downgraded the shares to 'underperform' from 'neutral'.

The bank cited the risk of potential US government spending cuts overseen by Elon Musk.

"We see growing uncertainty around the impact of the Department of Government Efficiency on the US budget," it said.

FTSE 100 - Risers

Anglo American (AAL) 2,475.50p 3.53% IMI (IMI) 1,808.00p 2.61% Fresnillo (FRES) 646.50p 1.33% Rolls-Royce Holdings (RR.) 550.60p 0.92% Smith & Nephew (SN.) 993.60p 0.85% Halma (HLMA) 2,697.00p 0.67% Next (NXT) 9,928.00p 0.67% London Stock Exchange Group (LSEG) 11,250.00p 0.63% Antofagasta (ANTO) 1,682.00p 0.60% Barratt Redrow (BTRW) 425.60p 0.50%

FTSE 100 - Fallers

BAE Systems (BA.) 1,239.50p -3.91% Rentokil Initial (RTO) 389.80p -1.81% Prudential (PRU) 640.60p -1.57% Spirax Group (SPX) 7,055.00p -1.47% Coca-Cola HBC AG (CDI) (CCH) 2,786.00p -1.28% Intertek Group (ITRK) 4,702.00p -1.14% Mondi (MNDI) 1,184.50p -1.04% Standard Chartered (STAN) 969.20p -1.04% Barclays (BARC) 262.45p -1.00% Diageo (DGE) 2,345.00p -0.97%