Citi initiates on the homeware retailer with a hold/medium risk rating and 435p target price. The broker says Dunelm is a high-quality and cash-generative business part-way through a low-risk, high-return organic expansion programme. But while its fundamentals are attractive, Citi says there is little hidden value on offer, and thinks industry headwinds drive downside risk to the forecast agenda.
Goldman Sachs reiterates its conviction buy on the temporary power supplier. In the broker’s view the recent acquisition by Horizon Acquisition Company of APR Energy – Aggreko’s largest competitor – highlights the unfulfilled demand and growth opportunities in the emergency power market. The strength of structural demand for temporary power is such that there is scope for both players to enjoy significant growth in the medium term.
UBS cuts its earning per share for the Swiss private bank for 2011, 2012 and 2013 by 6 per cent, 10 per cent and 6 per cent but upgrades it from sell to neutral. The broker thinks the market is now pricing in a realistic negative impact from the profit and loss currency mismatch. Replacing the old, highly profitable back-book with less profitable new business could dampen earnings growth over the short to medium term.