FTSE 250 movers: Greggs on the menu; Big Yellow tumbles
FTSE 250: 22,134.84, up 63.85 (0.29%)
Greggs shot higher as JPMorgan initiated coverage of the stock at 'overweight', highlighting significant re-rating potential.
JPMorgan said its rating was driven by its proprietary benchmarking analysis, which suggested Greggs was "a structural winner".
It also pointed to "a rather asymmetric risk-reward in the investment case", stating that with shares trading on trough multiples and the business approaching trough cycle, its bull case indicated 55% upside potential.
JPM highlighted Greggs' "significant re-rating potential", with catalysts being "more resilient-than-expected" on a like-for-like basis, with earnings delivery from FY26 onwards, coupled with an inflection in free cash flow and capital returns.
Trustpilot regained some ground on an upgrade from Morgan Stanley despite Thursday's battering in response to a report from short-seller Grizzly Research which alleged that the online review site hosted "mafia-style" campaigns that pressured businesses into buying subscriptions to improve their ratings. A third of the company's value was wiped out in the ensuing sell-off.
Ocado stock jumped as US supermarket chain Kroger agreed to pay $350m in compensation for the closure of three automated warehouses using its technology, the UK online grocer said on Friday.
On the downside, Big Yellow slumped after it said late on Thursday that it had ended takeover talks with Blackstone.
Blackstone announced in October that it was considering a potential takeover offer for the London-listed self-storage firm. Under UK takeover rules, it had until 8 December to either make a firm offer or walk away.
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