HMV Trading update
This week’s trading update (due out on Friday Sept 5) from HMV is predicted to have been helped by the bad weather, according to Pali International, which has increased its price target on the company.
The broker suggests HMV has prepared the market for only 2% to 3% like-for-like sales growth this year but that it will have done better than this in the first 18 weeks of the financial year.
This adds to Pali’s view that its full year pre-tax profit forecast of £65 million for HMV is well under-pinned. As a result its target price has been upped from 110p to 120p, which compares with an underlying share price of 133.25p. It maintains its ‘Neutral’ recommendation on the company.