A swingeing broker downgrade wiped £565million off the value of booming British tech firm Ocado.
Bank of America Merrill Lynch (BAML) warned Ocado is likely to grow slower in future as it slashed the online supermarket’s rating from ‘buy’ to ‘underperform’.
Ocado has left its many critics with egg on their faces after signing a number of valuable deals with foreign supermarkets, including US retail giant Kroger, sending its shares rocketing by more than 213per cent in the past year.
A swingeing broker downgrade wiped £565million off the value of booming British tech firm Ocado
But BAML has warned investors not to expect the same break-neck growth in the coming years.
It said: ‘Ocado is today entering into the delivery phase and expansion should become less of a catalyst for the coming two or three years. The risk is that the share price takes a pause from here.’
The warning caused the online supermarket’s shares to plummet 7.8per cent, or 81p, to 959p.
The FTSE 100 held up better than its European rivals as investors became increasingly skittish about a US-China trade war and political turmoil in Germany.
Rolls-Royce was one of the FTSE 100’s biggest fallers, despite receiving a rating boost from analysts at Credit Suisse
The blue-chip index was down by a wafer-thin 0.03per cent, or 2.58 points, at 7631.33, while the FTSE 250 also fell by 0.03per cent, or 5.92 points, to 20999.6 points.
Rolls-Royce was one of the FTSE 100’s biggest fallers, despite receiving a rating boost from analysts at Credit Suisse.
STOCK WATCH: Velocys
Fuel firm Velocys rocketed as it spearheaded a £4.9million fundraiser for its waste-to-jet fuel project.
The Department for Transport supplied a £434,000 grant, while Shell and British Airways also threw cash behind the project.
Velocys committed £1.5million and will lead the waste-to-fuel project.
The team will focus on the engineering and business case for constructing a debut UK plant, which would create jobs. Shares rose 1.7per cent, or 0.22p, to 13.25p.
The bank upgraded the engineering titan to ‘neutral’ and jacked up its target price by 150p to 930p after it set out plans last week to save £400million a year, which includes axing 4,600 jobs. Shares flopped 2.4per cent, or 22.6p, to 927.4p.
Indivior has secured vital breathing space in its bid to block rivals from copying its flagship opioid addiction treatment.
In a major boost for the drug maker, the US district court for New Jersey has ordered rival Dr Reddy’s to temporarily halt plans to launch a generic version of Indivior’s Suboxone.
Nearly £1billion was wiped off FTSE 250-listed Indivior’s share price on Friday after Indian drug maker Dr Reddy’s won approval by the US drug regulator to launch a rival to Suboxone in the States.
But Indivior has bought itself time after successfully petitioning the court for a temporary restraining order. Indivior says it will apply to extend the ban later this month.
The announcement caused shares to spike nearly 3per cent by midday before pulling back. They ended the day up 1.6per cent, or 5.8p, at 366.3p.
Shares in Primark owner Associated British Foods edged up 1per cent, or 26p, to 2762p after analysts said the budget fashion chain was ‘regaining its mojo’.
RBC Capital Markets is predicting a spike in sales at Primark and has therefore upgraded ABF to ‘outperform’.
Shares in defence firm Cobham rose 4.6per cent, or 5.7p, to 130.05p after US investment bank Morgan Stanley upgraded it to ‘overweight’ and hiked its target price by 35p to 150p.
The bank said: ‘Following a challenging period, we see an improved risk reward.’
It was a tough day for Daily Mirror publisher Reach, formerly Trinity Mirror, which announced the departure of finance chief and company secretary Vijay Vaghela after 24 years at the firm.
Vaghela, who is stepping down to pursue other opportunities, has a 12-month notice period and will stay until a replacement is found.
Shares in Reach slipped 5.4per cent, or 4.1p, to 72.1p.
Miner South 32 snapped up the remaining 83per cent of shares in Arizona Mining for £980m. Shares hopped 1.1per cent, or 2.4p, to 214p.
On AIM, Wishbone Gold shares fell sharply after it posted another loss.
The gold miner made a pre-tax loss of £689,000 in 2017, down from roughly £723,000 the year before. Shares slumped 6.8per cent, or 0.02p, to 0.28p.