8th Oct 2025. 8.59am
Regency View:
Update
Regency View:
Update
It’s been a relatively quiet fortnight for our FTSE Investor stocks, the calm before the earnings season storm. With most large caps due to report in the coming weeks, investors have been left to digest a lighter run of headlines. AstraZeneca rallied with the pharma sector’s rebound, Centrica banked fresh cash from an asset sale, Experian stumbled on competitive pressures, and 3i edged higher on exit speculation.
AstraZeneca rallies as sector relief sweeps Europe
Pharma shares roared back to life this week after Pfizer struck a pricing deal with President Trump’s administration, easing fears over aggressive U.S. drug price reform. The agreement triggered the biggest one-day gain for Europe’s healthcare index since 2008, lifting AstraZeneca (AZN) between 8% and 12% as investors rushed to reprice the sector. The relief stemmed from expectations that European drugmakers would now negotiate similar exemptions in exchange for U.S. investment commitments, giving the industry a clear path forward after months of uncertainty.
For AstraZeneca, the move signalled that Washington’s stance on global drug pricing may be softening. Analysts said the arrangement between Pfizer and the Trump administration could pave the way for AstraZeneca and peers such as GSK, Roche and Novo Nordisk to reach their own agreements on tariffs and pricing transparency. After a year clouded by policy risk, investors welcomed what looks like a more pragmatic approach to reform.
The rally restored confidence in the sector’s earnings visibility and reignited interest in quality European names trading at discounts to U.S. peers. For AstraZeneca shareholders, the broader re-rating underscores how sensitive sentiment remains to regulatory clarity. The company’s strong research pipeline and global scale continue to offer leverage to any rebound in healthcare valuations.
AZN Daily Candle Chart
Centrica banks cash from Cygnus sale
Centrica (CNA) was another notable gainer after Spirit Energy completed the £116m sale of its 46.25% interest in the Cygnus gas field to Ithaca Energy. The transaction also transfers associated decommissioning liabilities, simplifying Centrica’s exposure and strengthening its balance sheet ahead of the winter demand season. Investors reacted positively to the move, sending the shares higher as the company continues to streamline its upstream portfolio.
The disposal fits neatly into Centrica’s long-running strategy to reduce capital intensity and refocus on energy supply, trading and customer services. By monetising mature gas assets while prices remain supportive, management is freeing up cash for reinvestment in lower-carbon growth areas and shareholder returns. The removal of decommissioning obligations also lightens future liabilities, a welcome clean-up in a business where legacy assets have often clouded sentiment.
For shareholders, the sale confirms steady progress in Centrica’s simplification plan. The balance sheet looks healthier, and cash generation from core operations remains robust. With energy markets still volatile, a leaner structure gives the company more flexibility to capitalise on favourable trading conditions.
CNA Daily Candle Chart
Experian slides as FICO cuts out the middleman
Experian (EXPN) gapped lower following news that U.S. credit scoring giant FICO will begin licensing its algorithms directly to resellers. The change threatens to bypass traditional credit bureaus such as Experian, Equifax and TransUnion, which currently earn margins from distributing FICO scores in mortgage reports.
Analysts at Citi and Jefferies warned that the new model could trigger pricing competition among the bureaus, as lenders now have the option to negotiate directly with FICO. While the immediate earnings impact may be limited, the shift adds uncertainty to one of Experian’s most lucrative revenue streams. Investors dislike uncertainty, and the reaction showed how quickly the market reprices when long-established distribution models are disrupted.
Still, Experian retains structural advantages through its deep data sets and established client relationships, which extend well beyond FICO scoring. Management has a strong record of adapting to change, and the broader credit data business remains healthy. But near term, the pressure is on to show that innovation and diversification can offset the margin squeeze.
EXPN Daily Candle Chart
3i climbs on talk of Evernex sale
Private equity giant 3i Group (III) has been a strong performer for us recently following reports that it is exploring a sale of French IT services firm Evernex. According to Bloomberg, 3i is working with Bank of America on a potential deal valuing Evernex between €1.2bn and €1.5bn. The company declined to comment, but the prospect of another profitable exit helped lift sentiment in a stock already up nearly 20% year-to-date.
Investors view the potential sale as consistent with 3i’s strategy of realising value from mature holdings while recycling capital into higher-growth opportunities. The strong valuation range reported for Evernex suggests that private buyers remain willing to pay up for resilient digital infrastructure assets, even in a more selective M&A market. That read-across bodes well for 3i’s broader portfolio.
The shares have been on a steady upward trajectory as the firm continues to prove the strength of its long-term investment approach. With net asset value growth driven by marquee holdings like Action and potential exits on the horizon, investor confidence in 3i’s disciplined capital recycling model remains high.
III Daily Candle Chart
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