MARKET REPORT: Protein drink company bulks up on fresh rating
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Shares in protein drink maker Applied Nutrition were given a tonic yesterday after analysts at Deutsche Bank said investors should ‘bulk up’ on the stock. The company, founded by Liverpool scaffolder Thomas Ryder, has been losing weight as it drifted lower following its market debut in October. But it was given a boost by Deutsche analysts.
The German bank, whose Numis UK business was the sponsor for the Applied Nutrition offering, started the stock with a ‘buy’ rating and a 180p target. In its first ten years, Deutsche pointed out, the company grew quickly by leveraging production and innovation capabilities.
And its focus on innovation is a clear differentiator, allowing it to grow ahead of the wider sports nutrition market, which is globally estimated to be worth £189billion. Having floated at 140p on October 24, shares have been on a rollercoaster ride – hitting 150p on the first day but later falling as low as 135p before see-sawing yesterday to close 0.7 per cent, or 1p, higher at 136p.
Applied Nutrition, founded by Liverpool scaffolder Thomas Ryder (pictured), has been losing weight as it drifted lower following its market debut in October. AIM-listed Science in Sport, which has been hoping for a re-rating based on the Applied Nutrition float, held steady at 26.5p.
There was no bulking up for the FTSE 100, which closed 0.3 per cent, or 23.60 points, lower at 8335.81 although the FTSE 250 managed to gain 0.5 per cent, or 112.41 points, to 21,005.15. Broker comment supported British Airways owner IAG, up 4.1 per cent, or 10.7p, to 175.1p as analysts at JP Morgan said it was their most compelling overweight in the airline sector and added the stock to the ‘analyst focus list’.
