Proactive Investors
Published Apr 10, 2023 08:51
Updated Apr 10, 2023 09:11
Can FTSE 350 biggest fallers could offer bouncbackability?
Proactive Investors - Before analysts at Citi double-upgraded Direct Line Insurance Group PLC (LSE:DLG) the shares had fallen almost 40% since the start of the year and were the second-worst performers on the FTSE 350.
After the boost from 'sell' to 'buy' it is now the third-worst performer, but for those who see investing as a medium- or long-term enterprise there is plenty of time for the upside to emerge that the analysts envisage when they say the falls offer "an attractive entry point".
Looking at the other names that have crumbled so far in 2023, investors might spy similar bouncebackability, to borrow a football manager's term.
The biggest drop has been at NCC Group PLC (LSE:NCC) and this was almost all in the past week, following a warning that more companies were delaying and cancelling buying decisions following US tech sector client job cuts.
Broker Jefferies said the share price "has been anticipating weakness, but given the magnitude of the shortfall, the shares are likely to remain under pressure".
Second is Spirent Communications (LSE:LON:SPT), which alterted to similar delays in customer decision-making early in March.
Like Direct Line, its share price suffering has been seized by analysts as an opportunity, with UBS upgrading to 'buy' last week as the 19% discount to the sector was seen as unwarranted.
Top 20 FTSE 250 fallers YTD
Top 10 FTSE 100 fallers - share price
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