MARKET TALK: Deutsche Bank Downgrades Home Retail To Hold

15th Jun 2010 07:31

0631 GMT [Dow Jones] Deutsche Bank downgrades Home Retail (HOME.LN) to hold from buy and cuts target price to 250p from 350p. This follows the company's disappointing 1Q trading update. It notes sales were below the brokerage's expectations, with the performance at Argos particularly disappointing. "We continue to see opportunities at Homebase, the dividend yield is healthy and the company is buying back shares. However, key metrics at Argos...have deteriorated and we believe a near-term recovery is unlikely." While management continues to control costs tightly, DB now sees risk as being to the downside. Shares closed Monday at 231p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 15, 2010 02:31 ET (06:31 GMT)