*

Hitt og þetta 27. júlí 2006

DJ MARKET TALK: Credit Suisse Cuts Woolworths Forecasts

[Dow Jones] Credit Suisse lowers Woolworths (WLW.LN) pretax profit forecasts for 06/07 by 13% to GBP57.7M and for 07/08 by 8% to GBP27.7M. Attributes the move to expectation of sales growth around 3% lower than previously expected in 1H and FY pretax forecasts.

"We acknowledge that the hope of a profit recovery even if not achieved this year is likely to give some downside support to these shares (either via a recovery valuation or because of the presence of Baugur on the shareholder register)...But we can see no reason for Baugur to pay up if the structural damage to this business from its weak positioning intensifies." Maintains 25p target and underperform rating. (DWE)


Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com


(END) Dow Jones Newswires