European Markets on Monday, June 9: Stock Moves, STOXX 600, FTSE 100, DAX
In a dramatic turn of events, shares of THG, the maker of Myprotein, plummeted to an all-time low on Monday. The company’s stock price has lost nearly 96% of its value since its initial public offering on September 16, 2020, according to data from FactSet. Despite this, analysts at Jefferies remain optimistic, suggesting that investors can double their money with the stock.
According to a note to clients on May 8, Jefferies’ Andrew Wade and Grace Gilberg stated, "With the current year set to absorb the near-term effects of whey, tariffs, and demerger-related one-offs, [financial year 2026] looks set to be the year in which THG demonstrates its underlying potential – we anticipate both Beauty and Nutrition will be in robust growth, and this should drop through to a year of strong cash generation – the template for future years."
However, not all analysts share this view. JPMorgan analysts, led by Lara Simpson, took a more cautious approach, citing THG’s first-quarter results, which missed their estimates by 7%. The analysts argued that the company’s executives will need to demonstrate a turnaround before shares rally.
In other news, shares of London-listed chip designer Alphawave surged more than 20% after the company agreed to a $2.4 billion takeover by U.S. semiconductor giant Qualcomm. The California-headquartered firm will pay 183 British pence ($2.48) per Alphawave share in an all-cash deal, representing a 95% premium.
Qualcomm announced its intention to bid for Alphawave in early April, when Alphawave shares were valued at 94 pence. Analysts had previously expected the bid to complete as Alphawave has significant intellectual property rights in high-speed connectivity.
Meanwhile, WPP Group CEO Mark Read is set to retire at the end of the year after more than 30 years at the company, including seven years as chief executive. Shares of WPP have recorded a negative total return of 41% over Read’s tenure, compared to the 49% achieved by the FTSE All-Share index and 54% returned by the FTSE 100 index.
Read stated, "After seven years in the role, and with the foundations in place for WPP’s continued success, I feel it is the right time to hand over the leadership of this amazing company. I am excited to explore the next chapter in my life and can only thank all the brilliant people I have been lucky enough to work with over the last 30 years, and who have made possible the enormous progress we have achieved together."
In early market action, futures data from IG suggests that London’s FTSE will open 7 points higher at 8,836, Germany’s DAX up 3 points at 24,296, France’s CAC 40 up 5 points at 7,801, and Italy’s FTSE MIB 13 points higher at 40,595.
Global market focus will be on U.S.-China trade talks, which are expected to take place in London on Monday. President Donald Trump announced on Friday that Treasury Secretary Scott Bessent and two other Trump administration officials will meet with their Chinese counterparts in the capital as efforts to negotiate a trade deal continue.
U.S. equity futures were mostly flat overnight, with the S&P 500 trading near a record high and a busy week of potential market-moving news ahead. U.S. inflation data is expected to be a key topic later in the week, with the latest consumer price index due out on Wednesday, followed by the producer price index on Friday.
This report is based on information from CNBC. All rights reserved.
