Shares round-up: M&S, Mitie, IQE, Rosebank, Netcall

Upgraded IQE (LSE:IQE) guidance, the progress of “fast and effective” Rosebank Industries  Ordinary Shares (LSE:ROSE) and a record sales pipeline at AI growth story Netcall (LSE:NET) today put their shares in the City spotlight.

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The trio’s gains came in a session when the blue-chip FTSE 100 index held steady, with Marks & Spencer Group (LSE:MKS) among stand-out performers alongside Glencore (LSE:GLEN), Rolls-Royce Holdings (LSE:RR.) and BAE Systems (LSE:BA.).

The retailer has now surged by more than 25% since mid-May, with today’s rise of 12.8p to a five-month high of 392.7p on the back of JPMorgan’s new price target of 450p.

In a stronger FTSE 250 index, MITIE Group (LSE:MTO) continued this summer’s run of takeover action by agreeing a £3.1 billion acquisition by fellow facilities management firm OCS Group.

The combination, which the parties say will create a company better placed to support customers across the public and private sectors, comprises 218.5p a share in cash plus the previously announced 3.1p dividend.

The premium of 46.8% to last night’s closing price follows Thursday's 73% uplift on FTSE 250–listed flow control business Rotork (LSE:ROR) and 40.7% for another Somerset-based firm in Gooch & Housego (LSE:GHH), which has been a member of AIM since 1997.

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Rosebank has made three acquisitions of its own since 2025 as former bosses of Melrose Industries (LSE:MRO) seek to replicate the Buy, Improve Sell strategy of the GKN Aerospace owner.

Their targeting of underperforming industrial businesses began with US-based Electrical Components International before May’s $2.1 billion (£1.6 billion) deal for CPM, whose processing equipment is used in oilseed, animal feed production and renewable energy.

A subsequent $950 million move for MW Components lifted Rosebank revenues to $2.4 billion ahead of a three-to-five-year plan to improve margins by 600-700 basis points.

Rosebank said today: “Fast and effective early actions have been taken in each of the businesses we own, giving us confidence that we will achieve our strategy in delivering the intended returns for each of these three investments.”

Adjusted operating profit and earnings per share are running ahead of the City’s 2026 consensus, with Rosebank confident of further outperformance in 2027 based on the recent trading of MW Components and order intake at CPM.

Rosebank shares today jumped 40p to 339p, which compares with 370p when the stock joined the main market from AIM on 1 May and 330p in a March equity raise.

City firm Jefferies said MW's fast underlying progress was a “highly encouraging readthrough” for the wider group, which it values with a price target of 475p.

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Semiconductor wafer firms IQE led the AIM 100 index after it said trading in the first half of the financial year exceeded forecasts, with revenues of at least £64 million up 41%.

It said demand for its Indium Phosphide solutions continued to accelerate due to their critical role in enabling optical photonics products for data centres and AI infrastructure.

Revenue growth was also supported by ongoing strength in aerospace and defence segments, as well as robust demand for both 3D sensing and wireless products.

The shares surged 7.5p to 43.6p, which compares with April’s recent peak of 63p and the price target of Peel Hunt at 60p and this morning’s upgrade by Panmure Liberum to 54p.

The shares were as cheap as 5p at the turn of the year after the company downgraded profit expectations in September and said that a year-long strategic review was still underway as it sought a solution to its strained balance sheet position.

The turnaround took shape after an update in January, when IQE reported improved visibility across core segments including consumer mobile, data centre and AI-related photonics markets.

That was followed by April’s “transformational” £81 million fundraising agreement with long-term customer MACOM Technology and other investors, which IQE said would allow it to capitalise on opportunities and maintain its existing global footprint.

Peel Hunt said IQE now had an earnings upgrade to add to its recent long-term agreements with MACOM, Tower Semiconductor and another datacentre proxy.

It added: “We see a multi-year growth opportunity that is not yet incorporated in our forecasts, and expect further positive news flow over time.”

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Fellow AIM stock Netcall rose 5.4p to 119p as the provider of automation solutions and customer-engagement software backed 2025/26 results expectations and said sales of AI-related products were almost three times the prior-year level.

Netcall's customers span the enterprise, healthcare and government sectors, including two-thirds of NHS Acute Health Trusts, one half of UK local authorities and major enterprises such as Legal & General and Santander.

With June year-end adjusted earnings of £12.1 million up 23% on revenues of £57.7million, Netcall said demand for Cloud-based automation and AI-enabled solutions had led to a record sales pipeline at the start of the new financial year.

City firm Berenberg, which has a price target of 165p, said the current valuation was very attractive for a stock offering compounding AI growth.

It added: “Netcall consistently delivers on expectations, offering investors a returns compounder that is set to benefit from the digitisation and AI revolution, in our view.”