Investors are reluctant to factor in the boost to earnings of the Argos acquisition for UK supermarket giant Sainsbury (LON:SBRY) reckons heavyweight broker Deutsche, which has upgraded the grocer.
The bank has also pumped up the rating on the stock to a 'buy' from 'hold' and increased the target price to 325p from 265p - a 23% uplift.
Traders are worried about the execution risk of the deal, says analyst Niamh Mcsherry, who interestingly also notes that SBRY has achieved the greatest reduction in the level of promotions of the so -called "Big Four" over the last year and a half.
"We think this can contribute to a better margin trend."
The analyst reckons the Argos acquisition as part of the Home Retail Group will generate 4.5p of additional EPS (earnings per share), which is 20% higher than consensus for the 2018/19 year.
Fashion retailer Ted Baker (LON:TED) is picked off the shelf by house broker Liberum, and given a 'buy' rating and a boost to the target price to 3700p a share from 3100p (current price: 2,266p).
The stock is down 22% in the year to date as wider concerns over China and US Wholesale have, wrongly impacted the firm, the broker reckons.
"We address investors’ concerns and find the company in good shape," it added, noting wholesaling and licensing increasingly complemented by online and strong support growth prospects.
Elsewhere, in analyst land, Deutsche has also upgraded the target price on Anglo American Mining (LON:AAL) to 690p from 515p and repeated a 'hold'.
The broker says the board were visibly more relaxed at the AGM yesterday, and comfortably repeating its ‘guided’ US$4.8bn for 2016 EBITDA (underlying earnings) which was based on February 2016 spot prices.
Credit Suisse looks at global recruitment firm SThree PLC (LON:STHR) and pushed up the shares to 'outperform' from 'neutral' and lifted the target to 400p from 350p.
On the downgrade front Berenberg moved Cobham's (LON:COB) target to 200p from 245p and repeated a 'sell'.