MARKET TALK: SocGen Downgrades Home Retail To Hold From Buy

10th Jun 2010 14:41

1341 GMT [Dow Jones] Societe Generale downgrades Home Retail Group (HOME.LN) to hold from buy and cuts target price to 226p from 332p following a disappointing 1Q performance from Argos. Says like-for-like sales were down 8.1% versus the brokerage's expectations for a 3.5% decline. Notes the poor sales at Argos were blamed on the continuing weakness in the video games segment and underperformance in the important TV market. "A big concern is the apparent loss of market share in key categories, such as TVs. In our view the latter may reflect the UK recovery underway at the consumer electronics market leader, DSG International (DSGI.LN), which will gather momentum through '10/'11." Shares -5.3% at 225p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 10, 2010 09:41 ET (13:41 GMT)