Broker tips: Kingfisher, Man Group, Topps Tiles

1st Jun 2011 12:54

Matrix has hiked up its target price for B&Q owner Kingfisher ahead of its first quarter results, seeing more upside to come despite the recent share price run.Analyst Tom Gadsby says that the 31 ex-Focus stores acquired by Kingfisher in early May would add 2% to B&Q sales, "offsetting the headwinds form the inevitable fire sales that Focus will hold."The target price now stands at 325p (from 268p), and a 'buy' is kept.Credit Suisse thinks that the fund raising environment for hedge fund manager Man Group is improving and raises its target price from 250p to 270p.The broker says there is increased demand for hedge funds, and in particular managed futures funds such as AHL (Man's quantitative managed futures manager). The broker said it is becoming "more constructive" about the medium-term fund raising outlook, but thinks there continues to be a downside risk to expectations on management fee profit forecasts. A 'neutral' stance is kept.While Topps Tiles' interim results were broadly in line, finnCap has reduced its forecasts full-year forecasts after factoring in weaker-than-expected current trading.Like-for-like sales in the first seven weeks of the second half fell by 2.1%, "although apparently on an improving trend." While the third quarter comparator is a little easier, the fourth quarter comparator is tougher, notes analyst David Stoddart."We remain bearish on the consumer outlook, which we expect to remain restrained for many months," he said. Nevertheless, a 'buy' rating and target price of 75p are maintained.---BC