LONDON (ShareCast) - JP Morgan has lowered its target price on Home Retail Group by 11p to 224p following the retailer’s fall in like-for-like sales over the second quarter.
Home Retail said yesterday that same store sales were down by 5.8% from the same quarter last year at catalogue-based retailer Argos and by 8.3% at home and garden products-specialist Homebase.
“Sales were disappointing at both Argos and Homebase, giving clear evidence that UK consumption lurched downwards in the past two months,” the broker said.
“However, given that savings rates have barely moved, we expect worse to come.”
JPM keeps its ‘underweight’ rating on the shares.
Home Retail Group also saw its target price cut to 190p from 210p at Citigroup, which maintains its ‘sell’ stance on the group.
2.25p ()
