Nyse Order Imbalance 205496.0 Shares On Buy Side

The UK's blue-chip FTSE 100 index closed 0.04% lower on Wednesday, tracking European shares, after certain German parties agreed on a 500 billion-euro special fund for infrastructure investments.

Back home, S&P Global data showed that the UK's private sector growth continued in February as increased service sector activity more than offset a slump in manufacturing production. The country's composite PMI fell to 50.5 in 50.6, in line with the initial estimate.

"UK service providers achieved another modest increase in overall business activity during February, thereby extending a run of expansion that stretches back to November 2023," S&P Global Market Intelligence economics director Tim Moore said. "However, there has been a clear loss of growth momentum since last autumn and the survey's forward-looking indicators continue to suggest an elevated risk of stagflation on the horizon."

On the corporate side, the British miniature figures and games manufacturer Games Workshop Group was up 3.20% after disclosing that its pretax profit for the 12 months ending June 1 would be ahead of expectations.

Severn Trent shares fell 4.50%, the most on the FTSE 100, after its capital markets day. The UK water company said it expects net operational outperformance in its next regulatory five-year asset management plan period, called AMP8, covering April 1, 2025, to March 31, 2030.

Meanwhile, HSBC downgraded Haleon's rating to hold from buy while retaining its price target at 4.20 pounds sterling. The British consumer health company declined 3.40% at close.

HSBC on Wednesday downgraded British consumer healthcare company Haleon to hold from buy, while maintaining its price target at 4.20 pounds sterling.

Barclays on Monday adjusted its price target for Haleon to 4.45 pounds sterling from 4.15 pounds, highlighting the British consumer health company's "top tier" 2024 earnings quality.

Analysts also reiterated their overweight rating on the stock.

"Haleon is doing what a consumer company is meant to do, namely investing in A&P to drive organic sales growth and market share gains. The lack of EPS growth since spin is a legitimate criticism, but we continue to believe that a company with 5%+ OSG and 63%+ gross margins that is buying back shares should see robust medium term EPS growth once M&A headwinds drop out," analysts added.

For 2025, Barclays trimmed its Haleon EPS forecast by 2.5% but noted that it remains 1% above pre-result consensus expectations.

AlphaValue/Baader Europe sees limited upside potential for Haleon at current valuations despite concluding 2024 on a positive note, saying it may be prudent for investors to wait for a more optimal entry point to capitalize on the British consumer health company's stock.

"Haleon's shares have risen by over 20% in the past year, driven by strong operational performance and diminished concerns over Zantac litigation," analysts said. "At current valuations, we see limited upside potential for Haleon, as our projections already incorporate the company's 2025 targets and include a 30% premium to relative valuation metrics."

The research firm rates the stock at reduce, with a price target of 4.12 pounds sterling.