Morrison: BarCap still struggles to see upside
(CercleFinance.com) - Barclays Capital reiterates its "underweight" rating on Morrison after the British supermarket group reported its interim results yesterday.
In a note to clients, Barclays analysts admit that Morrison's decision to pay out a special dividend for the first six motnhs of the financial year "surprised" them.
"We did not doubt the company's ability to fund a second special dividend in 2018, but had assumed that an annual payment would have left more room for flexibility," the broker says in the note.
BarCap says its takes this as a "sign of confidence" from the retailer.
While these results brought another set of "creditable" numbers according to the analysts, they say that they still struggle to see upside in Morrison's valuation and hence reiterate their "underweight" rating, with a target price of 225 pence.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, Barclays analysts admit that Morrison's decision to pay out a special dividend for the first six motnhs of the financial year "surprised" them.
"We did not doubt the company's ability to fund a second special dividend in 2018, but had assumed that an annual payment would have left more room for flexibility," the broker says in the note.
BarCap says its takes this as a "sign of confidence" from the retailer.
While these results brought another set of "creditable" numbers according to the analysts, they say that they still struggle to see upside in Morrison's valuation and hence reiterate their "underweight" rating, with a target price of 225 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.