MARKET TALK: Singer Capital Cuts Home Retail To Fair Value

16th Jun 2010 09:03

0803 GMT [Dow Jones] Singer Capital Markets downgrades Home Retail Group (HOME.LN) to fair value from buy, and reduces its target price to 215p from 342p. Says the 1Q sales performance at the group's Argos business has been disappointing, however trading at the Homebase business has been robust and remains encouraging. Still, "the weakness of trade at Argos and our concerns about exposure to an increasingly cash strapped consumer prompts us to downgrade [pretax profit] estimates by 6.9% [to GBP285M] in the current year and by 8.2% next year [to GBP300M]," it adds. Shares +0.4% at 231p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 16, 2010 04:03 ET (08:03 GMT)