Broker snap: Panmure downgrades N Brown to 'hold'

10th Oct 2012 11:18

Panmure Gordon has downgraded its rating for internet and catalogue home shopping firm N Brown from 'buy' to 'hold', saying that shares are likely to hold ground in the near-term."We move to a 'hold' rating from 'buy', following sector outperformance and consequent multiple expansion towards our target multiple on the back of the July trading statement. "We think that the shares are now likely to tread water until strategic decisions such as the identification of a new CEO are taken," the broker said.Top line growth of 2.5% during the 17 weeks to June 30th was broadly in line with analysts' forecasts, while like-for-like sales growth of 1.9% beat consensus estimates of below 1%.Panmure says that the company is at a "crossroads" and it is a 'holder' of the stock until there is a "clearer road map from management".The shares trade at a discount to the sector, at 10.3 times prospective earnings on Panmure's estimates, and yields 4.8% "which will be attractive to some market participants".The target price has been left at 285p.By 11:13, the shares were down 3.34% at 269.5p.BC