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Fashion retailer Supergroup saw shares plummet after a note from Liberum downgrading its rating from “buy” to “hold” with a target price of 1,500p. The broker cited concerns over competition and excess inventory for the company’s label Superdry, which had led to heavy discounting to boost sales before Christmas. The broker said mild weather had hit sales, and meant there was too much stock left.
Public service contractor Serco had its target price reduced from 97p to 85p as its rating fell from “hold” to “reduce” at Numis. While Serco’s forecast for 2015 is slightly better than expected, the outlook for 2016 is materially worse than Numis, and industry consensus, predicted, thanks to the loss of several contracts. The broker said it expected Serco to struggle in 2017 as well before a return to growth in 2018.