FTSE 100 movers: Two analysts point out high PE multiple on Hargreaves´ shares

5th Feb 2014 15:07

AB Foods was extending gains for a second session after analysts at Morgan Stanley said on Tuesday that the market was "fundamentally mis-pricing" its Primark retail chain. The company´s shares hit a new record high at 2,930p on the back of those comments. Hargreaves Lansdown´s interim results showed strong momentum according to analysts at Numis and the firm hiked its dividend by 11%. The shares moved lower nevertheless, in part - perhaps - following the sharp rise seen at the end of last year. Canaccord and Numis both pointed out the fact that the shares are trading at a price-to-earnings (P/E) multiple towards 40; despite what appeared to be positive views - overall- on the outfit´s operational performance. Analysts at Cannacord also declared themselves "skeptical" as regards management's guidance on the impact of RDR2 rules - which would suggest "that headwinds created by the change in revenue model will be minimal even after allowing for changing consumer behaviour".RSA led gainers for the better part of the day after the insurance giant named former RBS boss Steven Hester to the top post. Several analysts gave a positive endorsement of the move. Unilever's stock slipped lower after the company's shares today began trading without the rights to their latest dividend payment. Late in the afternoon reports surfaced that broker Citi had 'placed' 5m shares of Aggreko. GlaxoSmithKline was a late gainer following the release of its full-year results at noon. Its quarterly earnings per share (EPS) figures undershot analysts´ estimates, as did the company´s 2014 financial guidance. Nonetheless, investors may have drawn comfort from the strong sales seen of its 'star' respiratory treatment Advair. Some observers have been fretting about the outfit possibly relying too much on it. FTSE 100 - RisersAssociated British Foods (ABF) 2,874.00p +4.05%RSA Insurance Group (RSA) 103.00p +4.04%Tullow Oil (TLW) 812.50p +2.39%William Hill (WMH) 341.50p +2.03%Shire Plc (SHP) 3,076.00p +1.99%Fresnillo (FRES) 787.50p +1.94%Randgold Resources Ltd. (RRS) 4,399.00p +1.85%British Sky Broadcasting Group (BSY) 892.00p +1.71%Coca-Cola HBC AG (CDI) (CCH) 1,609.00p +1.71%Persimmon (PSN) 1,305.00p +1.40%FTSE 100 - FallersHargreaves Lansdown (HL.) 1,372.00p -8.35%Aggreko (AGK) 1,535.00p -2.48%Tate & Lyle (TATE) 759.50p -1.68%Sage Group (SGE) 407.90p -1.66%Smiths Group (SMIN) 1,377.00p -1.36%Imperial Tobacco Group (IMT) 2,198.00p -1.30%CRH (CRH) 1,552.00p -1.08%Unilever (ULVR) 2,303.00p -1.07%Vodafone Group (VOD) 216.25p -1.05%IMI (IMI) 1,447.00p -0.96%AB