E LIECHTI INVESTEC
2012 downgrades are expected but 2013 forecasts fall by even more given warnings in a number of areas. US higher education is still seeing drag given state budget pressure while college admissions are reducing. We retain our “Hold” guidance but cut the price target from 1240p to 1190p.
THOMAS SINGLEHURST CITI
A miss against consensus earnings is a comparatively rare event. We think the company will continue to post further market share gains as it did in 2012, but we are not convinced overall earnings momentum will improve until late 2013 or even 2014. We are neutral with a target price of 1310p.
IAN WHITTAKER LIBERUM CAPITAL
While the downgrade may seem small, this is a stock that has (had?) a reputation for structural protection and earnings growth. It is clear the structural pressures are increasing within the business particularly in US higher education. We reiterate our “Sell” guidance with a 1050p target price.