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Moonpig shares advanced on Monday as brokers started coverage on the recent IPO.
Moonpig MOON, +3.38% rose as high as 443.60 pence, after pricing its initial public offering at 350 pence in early February.
Citi, a coordinator on the IPO, called the online greetings-card maker that is dominant in the U.K. and Netherlands a buy with a 550 pence price target. JPMorgan Cazenove, a coordinator, rated Moonpig overweight a 495 pence price target. “The group’s scale, data pool and loyal customer base create a first-mover advantage, which acts as a barrier to entry,” said analysts led by Georgina Johanan.
HSBC, a bookrunner, initiated at buy with a 510 pence target price, saying its “expansion into larger online card-attached gifting market with low-cost customer acquisition model offers strong potential.” Jefferies, another bookrunner on the IPO, called it a buy with a 510 pence price target. Numis, a third bookrunner, slapped a 500 pence price target and buy rating.
After gaining 2% last week, the FTSE 100 UKX, +0.27% tacked on another 0.3%. Investors rotated toward more defensive offerings including household-product makers Unilever ULVR, +1.44% and Reckitt Benckiser RB, +1.65% and alcoholic-beverage maker Diageo DGE, +1.38%.
Flutter Entertainment FLTR, +6.11% shares surged 7%, as it said it is considering a U.S. IPO of a “small share” of its sports-betting and daily fantasy site FanDuel. FanDuel rival DraftKings DKNG, +0.20% has surged 508% over the last 12 months.
