US Edition Goals Soccer Centres
Buy at 193p (this week 208p) says W?H Ireland. After half-year results from the leisure facilities provider, W?H Ireland has reiterated its positive rating. The results met the broker’s forecasts, with revenues up 12pc and like-for-like sales rising 1pc. Forward bookings are running at normal levels, with two new sites opened and construction due to start on a Los Angeles site in 2010. Although FY forecasts have been left unchanged, given some summer weakening, the valuation remains attractive.
HMV
Sell at 115p (this week 113p) says Credit Suisse. Although a first-quarter trading update was broadly in line with expectations, Credit Suisse has reiterated its negative stance. While HMV is benefiting from less competition, the withdrawal of such capacity may be masking underlying structural pressures. Also, UK video games sales – now 24pc of sales – have slowed, while the current discount sector valuation underlines general investor concerns for the outlook.
British Airways
Hold at 184p (this week 189p) says Deutsche Bank. The broker has recently initiated coverage of this former state airline with a hold. On the positive, the shares remain likely to react to signs of US economic recovery, with a favourable authority decision on the group’s merger with American Airlines possible, Deutsche says. But, potential strike action, the pension deficit position and share price valuation need consideration. British Airways remains a high-risk investment, Deutsche says.