<strong>DSG INTERNATIONAL</strong><br />Morgan Stanley downgraded DSG International to “underweight” and recommended investors take profits following the 50 per cent price increase over the last three months. The broker said that, although it believes that DSGI offers more leveraged upside in a consumer recovery than any other stock it covers, its bull case scenario playing out looks increasingly remote, and it no longer sets a target price on the stock.<strong><br />AB FOODS<br /></strong>Investec upgraded its full year 2009 numbers for AB Foods in line with the firm’s recent positive update. It also upgraded its 2010 pre-tax profit forecasts, but downgraded earnings per share. It said that the group’s principle profit engines, Primark and Sugars, continue to demonstrate their defensive qualities. The broker retains its “hold” recommendation with a new target price of 900p, up from 770p. <br /><strong><br />TOPPS TILES<br /></strong>KBCPeel Hunt upgraded its forecasts for Topps Tiles after it confirmed a significant improvement in fourth-quarter trading. It increased full-year 2009 estimates by seven per cent and 2010 by nine per cent. The broker said that, with Topps having controlled costs tightly, the opportunity for further upside driven by positive operation gearing remains likely. It has a “buy” recommendation on the stock, with a 120p target price.