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Citi has upgraded to “buy” from “neutral”, but cut the target price to 190p from 220p. The broker thinks negative sentiment is already priced in, and that cash flow generation is likely to remain strong and support dividends, with the prospect of improving sales over the coming months.
Numis has upped to “buy” from “hold”, with the target price kept at 345p. Numis thinks shares have fallen too far relative to fundamentals, and that management is likely to hit its 25 per cent profit before tax margin target by the end of 2016, with scope for greater margins beyond that.