FTSE 100 movers: Rolls-Royce rallies on broker note; miners fall

(Sharecast News) - London's FTSE 100 was down 0.5% at 7,514.27 in afternoon trade on Monday. Rolls-Royce rallied as Citi lifted its price target on the shares to 431p from 294p as it increased its forecasts after the engine maker's capital markets day.

The bank said its earnings per share forecasts were up 27% in the near term and 52% in the long term, and the target price lifted, driven by "very strong" cash generation.

"In the near term, we believe cash flow will be helped by working capital unwind, but expect the medium term FCF of well over 30p per share (31p in 2025 rising to 38p in 2028) will be sustainable and should be valued accordingly," Citi said.

Miners Glencore and Rio Tinto were both lower after data showed that China is sinking deeper into deflationary territory.

British Gas owner Centrica was in the red as Morgan Stanley cut its price target on the shares and said it was lacking near-term catalysts to drive a further re-rating.

Utilities more broadly were weaker, with SSE and Severn Trent also down.

FTSE 100 - Risers

Rolls-Royce Holdings (RR.) 296.40p 2.45% Antofagasta (ANTO) 1,544.50p 2.01% Hargreaves Lansdown (HL.) 755.80p 0.99% JD Sports Fashion (JD.) 168.50p 0.93% Smurfit Kappa Group (CDI) (SKG) 3,066.00p 0.92% Associated British Foods (ABF) 2,444.00p 0.91% Barratt Developments (BDEV) 541.40p 0.89% Melrose Industries (MRO) 564.40p 0.89% Sainsbury (J) (SBRY) 297.30p 0.85% DCC (CDI) (DCC) 5,562.00p 0.76%

FTSE 100 - Fallers

Glencore (GLEN) 439.60p -3.89% Centrica (CNA) 144.30p -3.45% Endeavour Mining (EDV) 1,709.00p -2.90% SSE (SSE) 1,839.00p -2.31% Standard Chartered (STAN) 646.80p -2.00% Rio Tinto (RIO) 5,472.00p -1.99% International Consolidated Airlines Group SA (CDI) (IAG) 155.55p -1.80% St James's Place (STJ) 687.20p -1.77% Burberry Group (BRBY) 1,492.50p -1.71% Severn Trent (SVT) 2,675.00p -1.44%