BEST OF THE BROKERS
CHLORIDE
KBC Peel Hunt cut its target price on Chloride from 160p to 140p and downgraded the stock from “buy” to “hold”, after reducing its 2011 forecasts for the group. The broker said that long-term growth drivers are intact and that service revenues will provide some resilience, but that margin pressure is inevitable.
CARPETRIGHT
Investec cuts its forecasts for Carpetright saying that the firm is “counting chickens before they are hatched” against a backdrop of a difficult near-term trading outlook and a lack of consistent improvements in the housing market or in consumer confidence. The broker remains a seller of the stock, with a 410p target price.
BODYCOTE
Analysts at Panmure Gordon said that Bodycote is turning into a highly leveraged recovery play, and adjusted their forecasts radically to earnings of £50.3m for 2009. The broker said that higher sequential volumes from September and a lower cost base should lead to a material turnaround and retained its “buy” recommendation.