London stocks ended the session lower after a quiet trading day, with the FTSE 100 finishing in negative territory as mining stocks weighed on the index. Meanwhile, recruitment group Michael Page gained after receiving an upgrade from UBS.
FTSE 100 ends the week lower
The FTSE 100 closed down 22.56 points at 10,750.11, marking a weekly decline of 1.4%. Mining stocks were the main drag on the index, with Antofagasta among the biggest fallers following the production downgrade announced on Thursday.
Michael Page shares boosted by UBS upgrade
Shares in Michael Page, the FTSE 250 recruitment group, rose 6% in afternoon trading after UBS upgraded the stock from “neutral” to “buy”.
The bank argued that the shares have been unfairly overlooked during the broader recovery across the recruitment sector. UBS raised its price target to 235p from 180p, implying potential upside of around 20% compared with the closing price of 195p on 13 August.
Analysts Abi Bell, Rory McKenzie and Nicole Manion said Michael Page was entering the same phase of earnings stabilisation already seen across the wider staffing industry.
The stock has climbed around 43% from its April lows but remains down approximately 14% so far this year, compared with an average gain of 17% among sector peers.
Improving outlook for recruitment demand
UBS said the recent underperformance was not justified after reviewing the company’s cost structure and latest market indicators.
Michael Page’s gross profit decline slowed to just 0.2% year on year on a constant currency basis during the second quarter, with around half of its markets now returning to growth.
The bank expects gross profit growth to return to positive territory from the third quarter, supported by stronger areas including executive search, US construction and Asian markets.
Management is targeting more than £40 million in annual cost savings from this year, which UBS expects to become increasingly visible as recruitment activity stabilises.
UBS raised its earnings per share forecasts by up to 13% for the 2026 to 2028 period and said current market profit expectations now appear achievable for the first time in four years.
UBS sees further upside potential
Michael Page currently trades at around 0.8 times enterprise value to gross profit, below its historical range of 1.2 to 2.5 times through the economic cycle.
In an optimistic scenario driven by a full recovery in productivity, UBS estimates the shares could reach 500p, representing potential upside of around 158% from current levels. Its downside scenario, based on weaker recruitment fees and increased competition from digital hiring platforms, values the stock at 100p.
Wall Street opens mixed
The FTSE 100 remained close to flat as Wall Street opened with mixed movements on Friday.
The S&P 500 traded slightly above the record high reached in the previous session, supported by softer inflation data and reduced expectations of a Federal Reserve rate hike. The Nasdaq Composite also edged higher, while the Dow Jones Industrial Average slipped slightly.
Both the S&P 500 and Nasdaq were on track for weekly gains, with energy and technology stocks leading the advance as investor attention remained focused on artificial intelligence-related opportunities.
The weaker US retail sales data showed that consumer spending declined last month by the largest amount in more than a year, adding another factor for investors to consider regarding the outlook for the US economy.
