Today sees the latest quarterly ins and outs for the FTSE indices - changes are based on tonight's closing prices but will be officially confirmed tomorrow - and one potential FTSE 100 entrant has been given a late boost.
Intertek - a testing and inspections group with more than 1000 laboratories worldwide - has climbed 17p to 878.5p after Citigroup issued a buy note and raised its price target from 950p to £10. Citi said:
"Intertek offers strong structural growth at high return on capital employed and with sub- average cyclicality, we believe.
"With a strong start to the year, Intertek expects to "grow well" during 2009. We assume this implies 5-10% organic growth and flat/up margins. This feels at least as positive (perhaps more so) as equivalent guidance [from its peers].
"Our new £10 price target values Intertek at 10 time 2009 estimated earnings, a 25% premium to the sector. This level of premium would be justified,
we believe, by its higher structural growth and returns, relatively defensive growth and a compelling bolt-on acquisition story."
Based on last night's close Intertek would be promoted from the FTSE 250, as would miners Fresnillo - up 4p to 404p - and Lonmin - 76p higher at £11.54.
Those threatened with relegation from the FTSE 100 are Liberty International - up 7.25p to 288.5p - FirstGroup - down 3.8p at 194.1p - Wolseley - up 9.8p at 151.8p - 3i - up 11.8p at 188p - and the London Stock Exchange itself - up 7p to 377p.
Former FTSE 100 members Yell - down 0.75p to 14.75p - and Punch Taverns - up 1.75p to 34.5p - are among those now facing ejection from the FTSE 250 to the small cap index.
