MARKET TALK: Execution Noble Cuts Mothercare To Sell From Hold

16th Jul 2010 12:18

1118 GMT [Dow Jones] Execution Noble lowers Mothercare (MTC.LN) to sell from hold, following the company's 1Q trading update. Also reduces target price on the stock to 450p from 550p. Says the company "confirmed our fears on the outlook for the UK." Says that given the high operational gearing of the UK business and the high seasonal gearing of the Early Learning Centre business, earnings visibility is low. "While the international growth story is still intact, we think the UK is likely to be the focus for investors in the run-up to Christmas, making the premium rating harder to justify," adds brokerage. Shares -1% at 525p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 16, 2010 07:18 ET (11:18 GMT)