Broker Recommendations

LONDON, September 15 (newratings.com) - Analysts at JP Morgan downgrade William Morrison Supermarkets (ticker: MZP) from "overweight" to "neutral," while reducing their estimates for the company. The target price has been reduced from 320p to 275p.

In a research note published this morning, the analysts mention that the company has reiterated its profits before tax guidance for FY08/9 at about £620-£630 million. Contrary to consensus expectations, William Morrison Supermarkets did not begin share buybacks in 1H, the analysts say. The UK market is likely to witness significant pricing pressure over the forthcoming months, JP Morgan adds. The EPS estimates for the current and next year have been reduced from 17.45p to 16.49p and from 21.95p to 18.61p, respectively.

© 2008 New Ratings