Dixons Carphone: shares drop after RBC downgrade.
(CercleFinance.com) - Shares of British electrical retailer Dixons Carphone are down 2.
3% at 168.6 pence on Thursday morning, after RBC Capital Markets downgraded its rating on the shares.
While it remains positive, RBC has downgraded its rating on the shares from a "top pick" to "outperform" and has cut its target price from 225 pence to 215 pence.
"We think valuation is attractive, Dixons Carphone has material international exposure (around 30% of profit) and it is gaining share in electricals, but it faces further mobile headwinds short term which means visibility is low," RBC analysts said in a report sent to clients.
Moreover, regarding potential consolidation in the European electrical retail sector, RBC thinks companies which may participate in consolidation (Ceconomy, Steinhoff and Tesco) may have "other strategic priorities" in the short term.
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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.
3% at 168.6 pence on Thursday morning, after RBC Capital Markets downgraded its rating on the shares.
While it remains positive, RBC has downgraded its rating on the shares from a "top pick" to "outperform" and has cut its target price from 225 pence to 215 pence.
"We think valuation is attractive, Dixons Carphone has material international exposure (around 30% of profit) and it is gaining share in electricals, but it faces further mobile headwinds short term which means visibility is low," RBC analysts said in a report sent to clients.
Moreover, regarding potential consolidation in the European electrical retail sector, RBC thinks companies which may participate in consolidation (Ceconomy, Steinhoff and Tesco) may have "other strategic priorities" in the short term.
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.