Broker snap: Panmure still cautious about HomeServe issues

10th Nov 2011 12:13

Panmure Gordon has kept its sell rating on repair services firm HomeServe, despite the firm revealing today that it has restarted its sales activity following the mis-selling scandal exposed on 31 October.The stock jumped by nearly a quarter on Thursday after the group said it would recommence taking 'inbound' calls from customers to buy its products. It has not yet restarted 'outbound' sales calls. Panmure Gordon did note that with the recent share price "weakness" - a bit of an understatement seeing as though the shares tanked from 485.3p to 218.5p in just two days - an update on its UK sales operations is welcome. By midday on Thursday, shares were up 23.89% at 270.7p.However, the broker said, "The risk of mis-selling issues remains unknown but real." Panmure said it will stay cautious until it has spoken to the company in a conference call later today.The 400p target price is unchanged.BC