GARETH DAVIES NUMIS
Sales of key title sales were down two per cent (we had hoped for flat), but better margin dynamics in a digital world meant profits have still risen, implying a better than expected margin. Earnings uncertainty leaves us comfortable with our ‘Hold’ rating and 138p target at this stage.
MALCOLM MORGAN PEEL HUNT
Income from selling rights is a worry. The company continues to have a budgeted but uncontracted rights profit to deliver between now and the year-end, and sales have been modest recently. We are not changing our ‘Buy’ guidance and 150p target, although we are mindful of this risk.
STEVE LIECHTI INVESTEC
Today’s statement suggests robust trading and momentum boosted by trade cookery segment strength and ebook/digital. Outlook looks very strong in Trade next year and digital momentum continues. We are not changing our price target of 183p or our ‘Buy’ recommendation.