Brokers note - HMV Group
Altium Securities has re-iterated its Hold recommendation on HMV Group following its AGM statement and acquisition.The broker says the sales performance in the first 18 weeks of HMV's 2010 financial year have been weaker than forecast but it could make this up over the next few weeks at its core HMV UK business. However, Altium believes its overseas divisions and Waterstone's chain will struggle to do so.
Altium suggests these weaker divisions could create potential downside pressure on forecasts and the acquisition of 50% of 7Digital will be mildly dilutive. It is therefore retaining its 'Hold' stance and keeping its price target on the company unchanged at 110p, which compares with an underlying share price of 113p following the 1% fall on Thursday morning.
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