Broker tips: CPP, Debenhams, Marston's

30th Jun 2011 12:52

Peel Hunt placed its rating and numbers under review at identity theft and credit card insurer CPP after the group mentioned no resolution to the ongoing investigation by the Financial Services Association (FSA).The firm - which announced in March that the FSA had raised sales-related issues with its identity protection products (causing Barclaycard to stop using its 'call to confirm' services) - said that sales slowed towards the end of the first half.Carver added that "with no resolution of the FSA investigations or comment on the possible timing of a resolution of the investigations our numbers and recommendation remain under review."finnCap confirmed a buy rating and 100p target price on high street retailer Debenhams after Thursday's update which showed that the group is broadly on track to deliver in line results.Still, "the shape of the income statement will be different to our previous expectations," noted analyst David Stoddart, explaining that profits in the second half will be broadly as expected, but revenues will be higher and margins will be worse.Like-for-like (LFL) sales grew by 1.5%, whereas the broker had anticipated a slight decline. While the broker expected a gross margin growth of 30 basis points, Debenhams has invested margin to drive LFL sales growth.Panmure Gordon kept its buy rating and upped its target price for brewing and pubs group Marston's, saying that management is successfully executing a "well-thought-out strategy.""Management is quietly making significant strides to reposition the group to achieve a more balanced earnings profile, drive earnings growth, improve returns and reduce leverage whilst maintaining and subsequently growing its best-in-class dividend," said analysts Simon French and Lindsey Kerrigan.The target price is raised from 120p to 130p.BC