BEST OF THE BROKERS
Citigroup said that the combination of further modest HMV market share gain progress, the ongoing product mix shift, and margin recovery at Waterstone’s should allow HMV to retain a stable group earnings before interest and taxes platform. Citi issues a “buy” rating for the music retailer and said the Mama acquisition should add steady earnings growth.
UBS reiterates its “neutral” rating for Arriva but changed its price target to 775p in order to reflect the price that Deutsche Bahn is making under the terms of its agreed takeover bid. On 17 June Arriva held its AGM and also the court meeting to approve the scheme of arrangement. UBS notes that the scheme was passed at both meetings.
JP Morgan Cazenove said that it sees further improvements in revenue trends at Vodafone but at a slower rate compared to recent quarters. JP Morgan gives the telecoms group an “overweight” rating and says that whilst its underlying estimates are unchanged, its headline figures fall by around two per cent due to updated currency assumptions.