BEST OF THE BROKERS
WELLSTREAM HOLDINGS
“It’s grim up north” said analysts at Citigroup, as they reduced their earnings per share estimates for Wellstream by 19 per cent for 2009. The broker said that the most solid and consistent part of the business has suffered over recent months, which will lead to earnings of £7-8m this year. Citi recommends investors “buy”.
MARKS & SPENCER
KBC Peel Hunt recommends investors “sell” Marks & Spencer ahead of its results next Tuesday. The broker said that, while the mood may be buoyed by a more favourable clothing market, the shares trade at eight times 2008 peak earnings, a level requiring company pre-tax profit growth of 20 per cent over four years to be recovered.
C&C
JP Morgan yesterday raised its target price on Magners maker C&C by seven per cent to €2.75. The bank said in other circumstances a €90m earnings forecast is not much of an achievement, but in the context of the consumer backdrop in its main markets the efforts are “laudable” and provide comfort for the next year.
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