Proactive Investors - Run By Investors For Investors

Citi downgrades Halfords as it 'gets ahead of itself'

A Halfords employee works under the bonnet
Halfords was downgraded by Citi, which said it was driving with no brakes’

Halfords Group PLC (LON:HFD)  is ‘driving with no brakes’, according to Citigroup, which this morning downgraded the motor parts and bike retailer after results.

The stock, up 25% in the year to date, is getting ahead of itself,  say analysts at the US bank, particularly given the rather uncertain outlook for the UK economy.

The stock was moved to ‘neutral’ from ‘buy’ with a price target of 430p a share.

Citi was the most active of the brokers early on as it also took the knife to Woleseley PLC (LON:WOS), the builders’ merchant.

It has pegged back its recommendation to ‘neutral’ from ‘buy’, while shaving its valuation down to £41.50.

MoneySupermarket.Com Group PLC (LON:MONY), meanwhile, was on the receiving end of a Jefferies downgrade to ‘hold’ from ‘buy’. The broker also cut its price target to 312p from 440p.

This followed the latest industry data which revealed the company’s popular price comparison site ‘is no longer leading the pack’ despite some fairly aggressive TV advertising of late.

Rightmove PLC (LON:RMV), by contrast, is an online phenomenon that has retained its edge. At least that’s the conclusion of the analysts at Liberum after meeting management of the property portal.

It said the emergence of OnTheMarket, an industry owned rival, has had no discernable impact on Rightmove and specifically its pricing power.

Liberum rates the stock a ‘buy’ all the way up to £50 a share.

The supermarkets were under the microscope at Deutsche Bank after the release of monthly industry sales data, which prompted a minor downgrade to Sainsbury.

Deutsche has pegged back its price target to 310p from 325p (and lowered its sales projections), but remains a ‘buyer’ of the stock.

It remains on the fence with its Tesco (LON:TSCO) rating, but is a seller of Morrisons (LON:MRW).


Register here to be notified of future HFD Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use