<strong>WOLSELEY</strong><br />Difficult trading across all business areas at Wolseley led Citigroup analysts to cut their earnings forecasts for 2009 by &pound;67m to &pound;293m and for 2010 from &pound;387m to &pound;293m. This has also led to a 26 per cent drop in estimated earnings per share for 2010. The broker has a &ldquo;hold&rdquo; rating on the stock, noting that the group continues to work hard at cutting costs, and has a target price of 1,040p (cut from 1,042p).<br /><br /><strong>HALFORDS GROUP</strong><br />Goldman Sachs downgraded Halfords to &ldquo;sell&rdquo; and added it to its &ldquo;conviction list&rdquo;, believing that the shares are &ldquo;priced to perfection&rdquo; and that, despite the limited downside to the broker&rsquo;s target price of 312p, Halfords is set to underperform peers. Goldman says the group has less potential to improve earnings in a recovering economic environment and a limited upside to mid-cycle multiple valuations.<br /><br /><strong>DIAGEO</strong><br />JP Morgan updated its estimates to reflect revised currency assumptions, a slightly better volume outlook in full year 2010, slightly less of a fall in marketing to sales rations and lower associate income. The broker&rsquo;s new price target is 875p, up from 860p, and it has a &ldquo;neutral&rdquo; recommendation on the stock. JPM now expects organic earnings growth of 4.2 per cent in 2009 and 1.9 per cent in 2010.A