Oriel Securities reviews 'buy' on N Brown

18th Jun 2014 08:55

Oriel Securities is reviewing its 'buy' recommendation on N Brown after the FTSE 250 home-shopping business reported sales below market hopes.N Brown, which caters for people aged 30 and above with brands such as Simply Be and Jacamo, said total group revenues for the 15 weeks to June 14th rose 2.6%, including like-for-like (LFL) growth of 2.5%, in line with company expectations.But Oriel said the like-for-like figure missed market expectations and was unimpressive.It said the company would do well to match Oriel's first half target of 6%, meaning it effectively needed to reach 10% like-for-like for the balance of the half."The risk is to the downside of forecasts," Oriel said. "The shares have been weak on the way in to this statement and it is hard to see them reacting well to today's news, even if the exit rate of LFL is better. We are putting the rating under review."Shares in N Brown fell 14.3p or 3.3% to 420.9p at 08:55 in London.PW