FTSE 100 movers: Pearson hit by downgrade; Halma gains on acquisition

(Sharecast News) - London's FTSE 100 was down 0.3% at 10,762.03 in afternoon trade on Wednesday. Pearson was under the cosh after Citi downgraded its stance on the educational publisher to 'neutral' from 'buy' on valuation grounds following a circa 40% rally in the shares since the February low.

The bank said Pearson's first-half performance highlighted positive operational momentum with a small beat at sales and adjusted EBIT levels.

"Following the H1 performance, we increasingly believe the medium-term framework for average margin growth of 40bps as a floor," it said. "In the short term, the weaker A&Q margins and a downgraded guide for English Language Learning have led us to trim our FY26E forecasts for adjusted EBIT, and EPS by 1%."

Citi lifted its price target on Pearson to 1,345p from 1,300p, mainly to reflect a higher target multiple of 17x, from 16.5x.

"At the current valuation, the shares fairly reflect the balance of operational momentum with limited upside to short-term consensus," the bank said.

On the upside, Halma gained after it agreed to acquire Pyxis, a US‑based specialist in water‑quality monitoring technology, in a deal worth an initial $170m (£126m). Halma said that further earn‑out payments of up to $30m may be made depending on Pyxis' performance over the next two financial years.

Pyxis designs sensors and systems used across industrial, municipal and environmental applications, and will operate as a standalone business within Halma's Environmental & Analysis division.

FTSE 100 - Risers

InterContinental Hotels Group (IHG) 159.90p 2.63% Halma (HLMA) 3,586.00p 1.47% Standard Chartered (STAN) 2,198.00p 1.34% International Consolidated Airlines Group SA (CDI) (IAG) 426.70p 1.07% Admiral Group (ADM) 3,958.00p 0.76% NATWEST GROUP (NWG) 688.20p 0.76% AstraZeneca (AZN) 11,998.00p 0.57% Fresnillo (FRES) 3,024.00p 0.40% Coca-Cola Europacific Partners (DI) (CCEP) 7,970.00p 0.38% Whitbread (WTB) 2,403.00p 0.38%

FTSE 100 - Fallers

Computacenter (CCC) 5,350.00p -2.82% JD Sports Fashion (JD.) 81.76p -2.64% St James's Place (STJ) 1,140.00p -2.53% Experian (EXPN) 2,899.00p -2.42% Pearson (PSON) 1,198.50p -2.24% Kingfisher (KGF) 302.90p -2.07% ICG (ICG) 1,914.00p -1.84% Smith & Nephew (SN.) 1,052.00p -1.78% Airtel Africa (AAF) 337.60p -1.75% Centrica (CNA) 149.75p -1.74%