LONDON (ShareCast) - Panmure Gordon has downgraded its 2009 and 2010 earnings forecasts by 6% for advertising firm Aegis but has retained its positive view of the stock.
The earnings downgrades were made on the back of "a brief trading
update call and revised forex assumptions."
The trading update call indicated to Panmure that there has been "no material pick-up in Q2" for Aegis though the client attrition rate may have softened somewhat.
"One of the main negatives on Aegis has been the rate of client attrition, which impacted Q1 in particular. We expect there to be some improved momentum now, albeit that it takes a while to feed into revenues. At this stage in the business cycle, there is also some concern over the near term profitability of the business," Panmure analyst Alex DeGroote said.
The broker has a target price for Aegis of 100p and rates the stock as a "buy".
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