MARKET TALK: Home Retail's Argos Letdown Particularly Worrying

10th Jun 2010 08:16

0716 GMT [Dow Jones] Results for Argos in Home Retail Group's (HOME.LN) 1Q trading statement are disappointing and a lot worse than expected says Seymour Pierce. The figures are impacted by weak game and TV sales. Seymour says the Argos results are worrying given that competition is intensifying, particularly from the food retailers. In contrast, Homebase figures are a little better-than-expected. Still, the brokerage says there are more compelling investment opportunities in the sector. It reiterates a sell rating because of the potential for downgrades to earnings forecasts although it maintains there is now limited downside to the shares. Shares -4.7% at 227p.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 10, 2010 03:16 ET (07:16 GMT)