FTSE 100 movers: Marks & Spencer gains after results; JD Sports in the red

(Sharecast News) - London's FTSE 100 was flat at 8,785.23 in afternoon trade on Wednesday. Marks & Spencer was the top gainer on the index even as it said it expects current-year profits to take a £300m hit from a "highly sophisticated" cyber incident that has hampered operations over the past month.

The news came alongside the retailer's full-year results, which revealed a 24% drop in statutory pre-tax profits to £511.8m, mainly due to a £248.5m impairment charge against its investment in Ocado Retail.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said "the bigger picture needs to be kept in mind".

"The cyber-attack is likely a one-off event, and the underlying business is performing well. M&S is gaining market share, improving profitability, and the balance sheet is in great shape," he said.

"The ongoing negative headlines have caused the valuation to fall in recent weeks, and it now sits in line with peers, which doesn't look too demanding given the above-average growth in food. This could mark an attractive entry point for investors willing to ride out some turbulence in the near term."

Precious metals miner Fresnillo shone as gold and silver prices rose.

Russ Mould, investment director at AJ Bell, said: "Government bond yields are on the rise in the USA and Japan, either down to fears over inflation, an upward spiral in national debts, or both, and precious metals are also reflecting these concerns.

"Gold and silver are rising again, after a pause for breath, and mining management teams are paying attention, too, as Pan American Silver is bidding for MAG Silver, at a price that makes other listed silver miners look potentially undervalued.

"Gold is nudging its way back to $3,300 an ounce, after a pullback from April's all-time high, and silver is having another go at forging above $33 an ounce, which would be the next step on a potential return to last October's 12-year high near $35."

Babcock gained as JPMorgan Cazenove lifted its price target on the stock to 1,100p from 1,000p as it said the next five years are looking "very exciting".

The bank said it was extending its estimates from YE Mar 28 to YE Mar 31, as it has done for several other defence stocks in recent weeks.

"We also increase our YE Mar 26E to Mar 28 estimated earnings per share by 1%/2%/4% following an upbeat teach-in (May 20th) on Babcock's Cavendish Nuclear business (7% of group sales)," it said.

"We expect BAB to deliver average EPS growth of 10% for the next five years, with high visibility and reducing execution risk.

"As a result, we now apply a higher target valuation multiple, increasing our multiples-based Dec-26 PT to 1,100p (from 1,000p) for 28% potential upside over the next circa 18 months."

Severn Trent was in the black after full-year results, while SSE fell.

JD Sports slumped as it warned that US demand could be hit with, customers facing higher prices due to US President Donald Trump's tariff polices and revealed a 2% fall in underlying sales amid a "volatile" market.

FTSE 100 - Risers

Marks & Spencer Group (MKS) 383.70p 4.38% Fresnillo (FRES) 1,081.00p 3.84% Babcock International Group (BAB) 891.50p 3.66% Phoenix Group Holdings (PHNX) 637.50p 2.57% BAE Systems (BA.) 1,837.50p 2.28% Rolls-Royce Holdings (RR.) 828.00p 1.27% Severn Trent (SVT) 2,746.00p 1.22% Intermediate Capital Group (ICG) 2,078.00p 1.17% Anglo American (AAL) 2,122.00p 1.14% AstraZeneca (AZN) 10,536.00p 1.13%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 85.30p -8.26% Spirax Group (SPX) 5,865.00p -2.57% Barratt Redrow (BTRW) 465.30p -2.37% SSE (SSE) 1,758.50p -2.22% InterContinental Hotels Group (IHG) 8,770.00p -1.88% Persimmon (PSN) 1,363.50p -1.77% WPP (WPP) 597.80p -1.74% Experian (EXPN) 3,857.00p -1.73% International Consolidated Airlines Group SA (CDI) (IAG) 329.90p -1.61% CRH (CDI) (CRH) 7,170.00p -1.59%