Broker snap: Faint praise for Home Retail

11th Sep 2009 13:15

The share price of Home Retail Group has been back-pedalling rapidly since the Argos and Homebase owner released a trading update on Thursday but for those who have not already sold Pali International thinks the shares are worth holding at their current level.Some profit taking after the share's recent good run was inevitable, reckons Pali analyst Nick Bubb. The broker has raised its rating from 'underperform' to 'neutral' while expressing a preference for sector peer B&Q owner Kingfisher.'Despite worse-than-expected gross margin pressures, Home Retail has still delivered more profit upgrades and the rating now looks less demanding,' Pali reckons.Dutch investment house ING is a seller of the shares, despite upping its price target from 220p to 255p.