Dixons Carphone: Credit Suisse cuts target price.
(CercleFinance.com) - Credit Suisse has cut its target price and estimates for Dixons Carphone, saying the British electricals and mobile phone retailer's robust results did not help sentiment.
Despite the company posting better than expected results each of its last four reports, investors continue to shrug off good news and seem increasingly focused on the broader UK macro and consumer demand picture, the broker laments.
While Credit Suisse is trimming its target price from 420 pence to 400 pence, mainly to reflect the profit downgrade due to the elimination of the Sprint joint venture, the professional maintains its "outperform" rating on the shares.
The broker says it remains positive, believing the group will continue to gain market share in the UK at the expense of independents and supermarkets.
Also the group's high margins in the industry are sustainable, Credit Suisse writes in a research note issued this morning.
Copyright (c) 2017 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.
Despite the company posting better than expected results each of its last four reports, investors continue to shrug off good news and seem increasingly focused on the broader UK macro and consumer demand picture, the broker laments.
While Credit Suisse is trimming its target price from 420 pence to 400 pence, mainly to reflect the profit downgrade due to the elimination of the Sprint joint venture, the professional maintains its "outperform" rating on the shares.
The broker says it remains positive, believing the group will continue to gain market share in the UK at the expense of independents and supermarkets.
Also the group's high margins in the industry are sustainable, Credit Suisse writes in a research note issued this morning.
Copyright (c) 2017 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.