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ASOS is still “overweight”, according to Barclays, but the broker says that while investor confidence remains low, thanks to under-performing the FTSE 250, it believes shares can “materially outperform” as sales accelerate on price investments, margins are unlikely to fall below four per cent, and could expand without jeopardising sales. Based on these factors, the broker raised its target price to 4,500p from 4,200p.
Canaccord Genuity said Domino’s UK performance was “eye catching” and you would not expect this level of growth from such a mature business, but “the trading pattern of this stock is becoming established: astonishingly good updates, upgrades, then trading sideways as the market waits to be convinced Domino’s can do it again”. And it looks to repeat, so the broker maintained a “hold” rating but with an increased target price of 1,100p from 965p.
Despite food wholesaler Booker announcing profits increasing by 10 per cent, and earnings per share up nine per cent, Panmure Gordon was cautious about its interim results to the end of September and maintained it's “hold” rating and target price of 150p. Group revenue was down one per cent to £2.2bn, and tobacco sales down 3.7 per cent, and the broker said it thought 2016 would be a challenging year with rising competition form discounters.