CABLE AND WIRELESS
Investec rates the telecommunications firm “buy”, with a target of 53p, down from 59p. The broker says that despite a lack of interest from buyers after its poor first half results there is growing interest from other UK telecommunications companies. The company’s woes stem from poor management, the broker says, and the new chief executive Gavin Darby has a track record in delivering efficiency.
BLACKS LEISURE GROUP
Numis rates the outdoor leisurewear vendor “sell”. The broker has lowered its target price to 3.5p following a weaker than predicted three months of trading. Numis believes business has deteriorated further through November, and the company will struggle to reverse its decline. Christmas trading will determine results to the end of the year on 12 February, and the company has lowered its expectations for the period.
MARKS AND SPENCER
Shore Capital rates the retailer “buy”. The broker says although the new Champs Elysees store itself is small, its opening shows commitment to international expansion which, along with e-commerce, is essential to the company’s growth prospects. Shore says the company is holding its own in clothing and food in its core market and despite the tough economic climate sees the opportunity for growth in earnings.