Alliance Boots "sell"

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analysts at Panmure Gordon maintain their "sell" rating on Alliance Boots PLC (AB.-GBX). The target price is set to 670p.

In a research note published this morning, the analysts mention that the synergies from the Alliance Unichem and Boots merger would be reinvested and are unlikely to contribute to the bottom line, contrary to market expectations. Alliance Boots’ Retail division maintained healthy sales growth and the Wholesale segment continued to witness a healthy performance in 1H, the analysts say.