FTSE 250 movers: Citi 'sell' hits Quilter; Grafton buyback pleases

(Sharecast News) - Citi trimmed its price target for Quilter on Thursday to 68p from 70p and reiterated its 'sell' rating.

The bank noted that larger-than-expected cost cuts have led to 10% consensus earnings per share upgrades since H1 results, with Quilter outperforming the UK market by around 25%.

"Yet a third major cost-cutting programme in four years may imply low confidence in the revenue outlook, which our analysis suggests is the main profit driver," it said.

"Our cost benchmarking analysis indicates that revenues, not costs, are Quilter's key issue."

Citi said that detailed margin analysis had driven its FY 2025 revenue estimate 7% below consensus, with around 30% downside to consensus EPS.

Building materials supplier Grafton on Thursday reported a 29% fall in half-year profits amid a challenging market, but still lifted its dividend and announced a new £50m share buyback.

Pre-tax profits came in at £93.6m for the six months to June 30, compared with £132m a year earlier. The dividend was lifted 8.1% to 10p a share.

Grafton said it expected full year adjusted operating profit of around £202.6m and a range of £194.6m - £209.4m, in line with its own compiled forecasts of analysts.

"Whilst market conditions are expected to remain challenging over the remainder of the year amid a backdrop of high inflation, high interest rates and cost of living pressures, our management teams lead our businesses with a through-the-cycle mindset and we are confident in the medium to long term strength of the group's brands and market positions to deliver superior returns," the company said.

Diversified Energy fell as it traded without rights to a dividend as did Redde Northgate, Quilter, Centamin, Pagegroup and LondonMetric Property.

FTSE 250 (MCX) 18,604.66 0.22%

FTSE 250 - Risers

Digital 9 Infrastructure NPV (DGI9) 59.00p 3.51% QinetiQ Group (QQ.) 331.80p 3.49% GCP Infrastructure Investments Ltd (GCP) 75.40p 3.43% Direct Line Insurance Group (DLG) 163.15p 2.87% Wizz Air Holdings (WIZZ) 2,297.00p 2.50% Darktrace (DARK) 359.40p 2.48% Just Group (JUST) 74.70p 2.47% Ferrexpo (FXPO) 78.90p 2.40% easyJet (EZJ) 427.40p 2.22% British Land Company (BLND) 328.90p 2.14%

FTSE 250 - Fallers

CMC Markets (CMCX) 106.60p -7.14% Ithaca Energy (ITH) 137.40p -6.28% Redde Northgate (REDD) 323.00p -4.44% Quilter (QLT) 84.50p -4.41% Pagegroup (PAGE) 418.20p -3.95% Diversified Energy Company (DEC) 92.35p -3.80% TI Fluid Systems (TIFS) 123.80p -2.21% Bank of Georgia Group (BGEO) 3,500.00p -2.10% Trainline (TRN) 231.40p -1.95% Centamin (DI) (CEY) 88.60p -1.88%