FTSE 100 movers: Charles Stanley makes contrarian call on Tesco

10th Nov 2014 16:19

Supermarket rivals Tesco and Wm Morrison were among the best performers, but Sainsbury was in the red after Cantor Fitzgerald cut its target price from 320p to 275p ahead of the results of its strategic review due out this week.Although an additional decline in profits in 2015/2016 is almost inevitable there is potential for Tesco to stabilise and commence to rebuild profitability over the medium to longer-term. The current valuation suggests near-term prospects are probably already baked into the cake. However, although the medium-term investment case remains unclear investor sentiment "is universally negative and we see potential for the share price to rally if action is taken," broker Charles Stanley says. "Our recommendation is maintained at Hold for the time being," it added.Travel stocks flew higher, with TUI Travel and IAG both registering some of the day's biggest gains.Prudential inched higher after announcing that its UK subsidiary has reached an agreement to sell its 25% equity stake in the Pruhealth and Pruprotect joint venture to Discovery Group Europe.Shopping centre owner Hammerson declined after it said that conditions in France are still subdued. The company, which reported an improved performance in the UK, said long-term leases were achieved 9% above estimated rental value (ERV) across the group and 8.5% ahead of previous passing rents. Retail leases were struck 15% above ERV in the UK, but just 1% above ERV in France.FTSE 100 - RisersTesco (TSCO) 192.50p +4.36%International Consolidated Airlines Group SA (CDI) (IAG) 412.90p +2.56%TUI Travel (TT.) 409.60p +2.48%Persimmon (PSN) 1,442.00p +2.27%RSA Insurance Group (RSA) 456.10p +2.22%Reckitt Benckiser Group (RB.) 5,260.00p +2.04%Marks & Spencer Group (MKS) 475.40p +1.97%St James's Place (STJ) 750.00p +1.83%Ashtead Group (AHT) 1,061.00p +1.73%Meggitt (MGGT) 484.30p +1.70%FTSE 100 - FallersSainsbury (J) (SBRY) 254.60p -2.68%Admiral Group (ADM) 1,196.00p -1.56%CRH (CRH) 1,384.00p -1.21%Royal Mail (RMG) 458.10p -1.04%Standard Chartered (STAN) 938.00p -0.86%Dixons Carphone (DC.) 400.10p -0.82%Anglo American (AAL) 1,355.00p -0.70%Rio Tinto (RIO) 3,019.00p -0.66%Centrica (CNA) 300.20p -0.66%SSE (SSE) 1,559.00p -0.64%