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FTSE 250 movers: Ocado surges on Amazon/Whole Foods deal; Cairn in the red

By Michele Maatouk

Date: Monday 19 Jun 2017

FTSE 250 movers: Ocado surges on Amazon/Whole Foods deal; Cairn in the red

(ShareCast News) - London's FTSE 250 was up 0.2% to 19,854.06 in afternoon trade as Brexit talks got underway in Brussels.


Ocado got a boost as Exane BNP Paribas upgraded the stock to 'outperform' from 'underperform' and lifted the price target to 325p from 220p following last week's news that Amazon is buying Whole Foods Market.

"We remain of the view that Ocado is unlikely to be an acquisition target but we concede that the probability of an outright purchase has now increased."

More generally, the bank pointed out that for a US grocer looking at the prospect of Amazon materially pushing on in online food, then for all its many issues, Ocado is a business potentially ready and able to help leapfrog the competition.

A report from Credit Suisse also helped to lift the stock, as it highlighted three reasons why the deal is actually positive for Ocado shares. "(i) It provides an extra impetus for grocers to sign a technology supply agreement with Ocado, particularly in the US; (ii) it increases the likelihood that Ocado is seen as an acquisition target; and (iii) from a customer perspective, it helps move online grocery further into the mainstream."

Aberdeen Asset Management was on the front foot following a report that Scottish Widows is planning to merge with Standard Life, which is merging with Aberdeen. According to the Sunday Times, talks about a possible deal are due to kick off this week.

Going the other way, Cairn Energy was weaker after saying it is seeking $1bn in damages from an international arbitration case in The Hague over its long-running tax dispute with the Indian government, on top of the $104m (£81.4m) that Indian tax authorities signed off last week.



Risers

Ocado Group (OCDO) 302.90p 9.83%
Mitie Group (MTO) 301.30p 4.00%
Kaz Minerals (KAZ) 489.40p 3.80%
Aberdeen Asset Management (ADN) 296.20p 3.78%
Capita (CPI) 669.00p 3.64%
Evraz (EVR) 179.80p 3.39%
Vedanta Resources (VED) 605.00p 3.33%
PZ Cussons (PZC) 348.20p 3.32%
Daejan Holdings (DJAN) 6,820.00p 2.56%
Northgate (NTG) 535.00p 2.49%

Fallers

CLS Holdings (CLI) 210.10p -5.32%
Cairn Energy (CNE) 180.10p -4.00%
Clarkson (CKN) 2,573.00p -3.96%
Nostrum Oil & Gas (NOG) 484.20p -3.64%
Rank Group (RNK) 236.50p -2.87%
Morgan Advanced Materials (MGAM) 299.50p -2.85%
FirstGroup (FGP) 137.80p -2.68%
Ibstock (IBST) 254.10p -2.64%
Euromoney Institutional Investor (ERM) 1,132.00p -2.41%
Caledonia Investments (CLDN) 2,940.00p -2.26%

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