NewsDJ MARKET TALK: Merrill Lynch Reiterates Buy On Kesa
09/21/06 - Dow Jones Newswires
1027 GMT [Dow Jones] Merrill Lynch reiterates a buy on Kesa Electricals (KESA.LN), with 355p price target. Expects Kesa to report Wednesday a 39% jump in 1H pretax profit to GBP35M, with results driven by a 17% profit rise at its Darty unit and return to profit by its Comet division. However, its BUT business is expected to remain a drag, with profit likely to be down 19%. Management appears encouraged by the progress of its newly refitted stores, broker notes. Merill Lynch says its FY pretax profit estimate of GBP156M may be conservative, as the pan-European TV market has remained buoyant after the soccer World Cup. Kesa +1.3% at 325p. (LEV)
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(END) Dow Jones Newswires
September 21, 2006 06:27 ET (10:27 GMT)
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