Brokers note - Game Group
Altium Securities has downgraded its recommendation on HMV Group from Buy to Hold following the recent share price gains and reports that it is having problems with its Waterstones distribution hub.
The broker says the news that the problems are leading to increased use of third-party distributors could impact on profitability during the Christmas period. Management has, however, dismissed such reports.
Altium says this situation does not demand any changes to forecasts at this stage but it does highlight a potential downside risk. Separately, following the HMV share price moving to within 7% of the broker’s target price of 125p it has downgraded its recommendation.
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