Broker snap: Panmure upgrades Lookers to buy

15th Aug 2011 12:42

Panmure Gordon has upgraded its rating on new and used car dealer Lookers from hold to buy ahead of the group's first half results due on Wednesday."While consumer confidence nears a 2-year low, we continue to believe that Lookers remains well positioned across all divisions, with the Group expected to continue to take market share in new and used cars and go from strength to strength in its Parts business," said analysts Mike Allen and Paul Jones.The broker estimates that first half revenue will come in at £1,017.9m, 3% above the year before. Earnings before interest, tax and amortisation is expected to total £29.5m, down from £29.8m, implying a 10 basis point fall in the margin at 2.9%."Post the trading update at the start of July we held our full-year forecasts as the Group appeared to be coping with the ongoing headwinds," Panmure said.The target price stands at 60p.BC