LONDON, January 6 (New Ratings) – Analysts at Deutsche Bank downgrade Kesa Electricals (KESA.L) from “hold” to “sell.” The target price is set to 230p
Shares of Kesa Electricals, an electrical and furniture retailer, operating in seven European countries, are currently trading at 263p.
According to Deutsche Bank’s research note published this morning, Kesa Electricals’ share price has appreciated 12.5% since December 10 due to speculations regarding a takeover bid. Dixons Group was expected to bid for Darty, in-line with its hostile break-up bid plans for Kesa, the analysts elaborate.
However, Deutsche Bank now believes that a bid for Kesa is unlikely. According to the analysts, the takeover bid by Dixons Group required that the warranty inquiry had a positive outcome and that the company traded well over the holiday season. The downgrade in rating has been prompted by Kesa Electrical’s share price currently trading above the target price, the analysts add.
The EPS estimates for 03/04, 04/05, 05/06 and 06/07 are 22.5p, 23.4p, 25.3p and 27.1p, respectively.
Deutsche Bank downgrades Kesa Electricals from “hold” to “sell.”
From New Ratings