Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Broker tips: IWG, Direct Line, B&M, Marks & Spencer
(Sharecast News) - Deutsche Bank adjusted its ratings on a number of retailers on Friday, as it noted that the European general retail sector ended 2022 on a "surprisingly good" note. "Whilst 2023 is unlikely to be a great year for consumers, the outlook is getting noticeably less chilly in our view," it said.
The bank upgraded discounter B&M European Value Retail and Marks & Spencer to 'buy' from 'hold', while its price targets for the two were lifted to 580.0p from 460.0p and to 210.0p from 145.0p, respectively.
Deutsche downgraded B&Q owner Kingfisher, Pets at Home, Asos and Wickes to 'hold' from 'buy' and cut its Kingfisher price target to 260.0p from 275.0p, but lifted its price target on Pets at Home to 355.0p from 310.0p. The bank's target price for Asos was upped to 950.0p from 800.0p, while its target price for Wickes was increased to 160.0p from 150.0p.
"Operating cost inflation likely remains the biggest challenge facing the sector but with energy costs falling it is largely wage inflation that has to be managed," said DB.
"Given this backdrop, our thesis has evolved to prefer clothing retailers over hardlines, discount over mainstream and physical retail over online."
Analysts at Barclays downgraded insurance firm IWG to 'equal weight' on Friday.
Barclays stated nothing "material" has changed strategically, but said consensus seems optimistic on cash conversion in IWG's company-owned business and highlighted that it sees risk that the firm's city locations do not fully recover to pre-Covid profitability due to structural changes in the office rental market.
"We cannot yet gain conviction that the earlier-stage digital and capital-light businesses can be a sufficient offset, and we downgrade to EW with a 170p PT (-11%), implying 37x/20x FY23e/24e EV/NOPAT," said Barclays/
The bank also downgraded Direct Line Insurance to 'underweight', noting that it believes the group's recent CEO change, strongly restricted solvency capital and "stiff competition" in UK personal lines all increased the likelihood of a capital raise.
However, Barclays also noted that operating performance was likely to remain soft in 1H23.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
