Shares in protein drink maker Applied Nutrition were given a tonic yesterday after analysts at Deutsche Bank said investors should ‘bulk up’ on the stock.
The company, founded by Liverpool scaffolder Thomas Ryder, has been losing weight as it drifted lower following its market debut in October. But it was given a boost by Deutsche analysts.
The German bank, whose Numis UK business was the sponsor for the Applied Nutrition offering, started the stock with a ‘buy’ rating and a 180p target.
In its first ten years, Deutsche pointed out, the company grew quickly by leveraging production and innovation capabilities.
And its focus on innovation is a clear differentiator, allowing it to grow ahead of the wider sports nutrition market, which is globally estimated to be worth £189billion.
Having floated at 140p on October 24, shares have been on a rollercoaster ride – hitting 150p on the first day but later falling as low as 135p before see-sawing yesterday to close 0.7 per cent, or 1p, higher at 136p.
Applied Nutrition, founded by Liverpool scaffolder Thomas Ryder (pictured), has been losing weight as it drifted lower following its market debut in October
AIM-listed Science in Sport, which has been hoping for a re-rating based on the Applied Nutrition float, held steady at 26.5p.
There was no bulking up for the FTSE 100, which closed 0.3 per cent, or 23.60 points, lower at 8335.81 although the FTSE 250 managed to gain 0.5 per cent, or 112.41 points, to 21,005.15.
Broker comment supported British Airways owner IAG, up 4.1 per cent, or 10.7p, to 175.1p as analysts at JP Morgan said it was their most compelling overweight in the airline sector and added the stock to the ‘analyst focus list’.
Elsewhere, soft drinks bottler Coca-Cola HBC added 1.3 per cent, or 36p, to 2854p after analysts at BNP Exane upgraded its rating to ‘outperform’, while packaging firm Bunzl gained 0.3 per cent, or 10p, to 3610p despite being downgraded to ‘hold’ by analysts at HSBC.
Legal & General topped the FTSE 100 gainers, up 6 per cent, or 13.4p, to 236.3 as the insurer maintained full-year profit guidance and hinted at more returns for shareholders.
Meanwhile, Vistry had a dead cat bounce, gaining 4.9 per cent, or 30.5p, to 658.5p even as the housebuilder’s demotion from the FTSE 100 was confirmed.
It will be joined in the FTSE 250 next month by retailers Frasers and B&M, with Games Workshop, wealth manager St James’ Place and investment trust Alliance Witan replacing them.
Victrex was the biggest riser on the FTSE 250 – up 10 per cent, or 100p, to 1104p – thanks to an upgrade to ‘buy’ from analysts at Jefferies.
But trading news weighed on Zigup, the former Redde Northgate corporate vehicle hire group, which dropped 12.9 per cent, or 49.5p, to 333.5p after a drop in first-half profits and revenue.
Among the small caps, Biome fell 14.3 per cent, or 0.75p, to 4.5p as the bioplastics firm warned on full-year profitability.
But miner Tungsten West rose 16.7 per cent, or 0.5p, to 3.5p after appointing Stephen Harrison non-executive chairman.
And Fusion Antibodies gained 39.3 per cent, or 1.65p, to 5.85p after news merged that it has had a grant application approved.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.