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Broker views: Banknotes, automotive retailing and publishing

27 March 2017 15:02

Banknote printer De La Rue (LON:DLAR) was downgraded to hold (from add) by analysts at Numis, which is says is due to the general lack of news flow since mid-Decmber.

The broker commented: "There has been limited news flow here of late, aside from the DuPont authentication purchase for $25m publicised on 12 December 2016.

"No end FY trading update is planned so there may be no fresh news this side of the finals on 23 May."

Numis cut its target to 634p per share (from 671p).

Meanwhile, French broker Exane BNP Paribas upgraded Inchcape (LON:INCH) to outperform (from neutral), stating that the motor retailer's Ignite strategy is beginning to bear fruit and underpins double digit EPS growth over the next four years.

"Growth is moving from new vehicle sales to aftersales, self-help and M&A; broadening the global presence and quality of the business," analyst Georgios Pilakoutas added.

Target price increased to £10.50 (from £7.35), implying 30% upside at current levels.

Publishing group Pearson (LON:PSON) took a drubbing from Jefferies International as it assumed coverage on the stock with an underperform rating (previously rated as a buy), after highlighting the continuing headwinds and structural issues facing the key US education business.

The US broker said: "Mitigating factors such as cost cutting and portfolio change, which have been flagged but not quantified, may help profitability near term and lead to a buyback or special dividend.

"However, visibility on a return to top-line growth is limited and we are cautious mid-term."

Target slashed to 540p from 880p.

Related Company: DLAR

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