MARKET TALK: Citigroup Cuts Home Retail Price Target

11th Jun 2010 08:16

0716 GMT [Dow Jones] Citigroup cuts Home Retail (HOME.LN) price target to 220p from 290p after a weaker than expected first quarter, particularly at Argos. Given fading household cashflow in 2H and the risk of a more competitive electrical market around peak trading, cuts February '11E pretax profit forecast by 9% to GBP270M. Keeps at hold, reflecting the view that consumer cashflow will deteriorate through '10. Says despite Home Retail's strong cash generation, about 7% dividend yield, and earnings accretion from buybacks, the group's 7x '11E EV/EBIT multiple is unlikely to expand. Shares +0.7% at 230p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 11, 2010 03:16 ET (07:16 GMT)