Goldman Sachs has downgraded Next Plc (LON:NXT) after the retailer warned last week that 2016 could be the toughest year it has faced since the financial crisis.
The City broker removed Next from its pan-Europe 'buy' list, reduced it to 'neutral' and cut its price target on the stock to 6400p from 7900p.
It also reduced its forecasts for full-year 2017 and full-year 2018 pre-tax profits by 4% and 6% to £819mln and £824mln respectively.
Goldman said: "In the context of both the group’s mature albeit stable store-based market share position, and declining online market share (from a high base), any meaningful growth for the business going forward is largely dependent on international Directory sales and The Label within the UK.
"Given their modest combined current size however (~10% of group sales, and ~8% of EBIT), these revenue sources are unlikely to make a material contribution to group growth in the near-term."
But Deutsche Bank was more charitable, upgrading Next to 'buy', although it reduced its price target to 6850p from 7200p.
Deutsche said 2% lower sales guidance for the year to January 2017 seemed to reflect a more cautious consumer outlook, combined with ongoing soft trading year-to-date in the UK clothing and footwear market (c80% sales).
"However, latest market share trends, as set out inside, suggest no brand-specific problem to us. Hence, whilst better weather and softer second-half comparatives are Next’s best hope of improving trends, we are not minded to wait on the sideline," it said.
Peel Hunt reduced its recommendation on fund manager Polar Capital Holdings plc (LON:POLR) to 'add' from 'buy', citing a difficult start to the year.
It also cut pre-tax profit and earnings forecasts by 24%, with the bulk of the reduction due to lower management fee earnings assumptions.
The broker said: "We have reviewed the factsheets for Polar’s fund range, which highlight an extremely difficult start to the year in terms of both performance and fund flows.
"Although the previous quarter had seen a return to inflows, market volatility has since had a pronounced impact with very few funds performing positively in either January or February."
Chemical group Synthomer PLC (LON:SYNT) got the thumbs down from Berenberg, which downgraded the stock to 'hold' from 'buy' but increased its price target to 345p from 315p.
Berenberg welcomed the company's acquisition of Hexion Polymers, Adhesives and Coatings but said the stock was fully valued.
Meanwhile, Investec developed a taste for food producer Produce Investments Ltd (LON:PIL), which owns UK potato business Greenvale AP Ltd.
The broker upgraded the company to 'buy' with a 200p target price, up from 140p.