Broker snap: Peel Hunt downgrades Moneysupermarket.com to 'hold'

9th Jun 2011 12:56

Peel Hunt has downgraded price comparison website Moneysupermarket.com from 'buy' to 'hold', in response to the recent strong run of the share price.The stock has risen by 21% over the past three months on the potential for upgrades to numbers given the trading momentum, analyst Malcolm Morgan notes.Meanwhile, the broker highlights that the Financial Services Administration issued a consultation document on the proposed regulation of price comparison websites (PCWs). "The FSA is asking PCW to review their practices to ensure compliance with the existing regulatory regime. We believe that the FSA is concerned that PCW are straying into the area of the provision of advice, and that by focussing on price alone as the criteria may run the risk of misspelling," said Morgan.While the broker cuts its rating, a target price of 100p is retained.---BC