Anglo-French electricals group Kesa, which last week posted full-year results and confirmed it may sell UK chain Comet, is on broker Shore Capital’s sell list.
Shore analyst Ramona Tipnis slashed her forecasts by 10% because “current trading is below management expectations and cost inflation is high enough to erode the benefits of the restructuring/cost-cutting exercise under way”.
She said: “Kesa is moving its strategy in the right direction but trading conditions are getting harder across all its markets.”
Oriel analyst Ben Hunt shifted his recommendation from hold to reduce. Hunt said: “Assuming the most optimistic scenario, where Comet is taken off Kesa’s hands for next to nothing and Darty grows profits consistently at around 5% out to the long term, we would value Kesa at a maximum of about 180p.”