Digital Look broker talk -UPDATE

7th Nov 2011 09:37

RBS: "At c0.45x TBV, the shares already discount a lot of negative news. The group prospects are uncertain and vulnerable to downturns in the economy and financial markets. Our recommendations of Barclays and the two Far Eastern banks are more analysable. However, RBS does now look oversold to us, even if any rebound is likely to be a rally, rather than a long term trend" [Nomura].ABF: We forecast a sharp recovery in group EBIT growth in FY12 (up 23%). This is led by the Sugar division (14 percentage points of group growth), driven by a favourable EU pricing environment" [Nomura].Admiral: "The stock is trading 14x 2011E earnings, which is not commensurate with +20% growth in the next three years, on our numbers" [Nomura]. Carphone Warehouse: "Today's decision to sell Best Buy Mobile and exit Best Buy UK stores could be a pivotal day in realising value for shareholders. (...) We retain our enthusiasm for the investment case" [Citi}.Hiscox: "Whilst we see Hiscox as an excellent business that has performed relatively well compared with peers in 2011, we see greater upside elsewhere in the sector and retain our Neutral recommendation" [Citi].Rototork: "Our Outperform investment case remains unchanged post the CMD: (i) Increasing order momentum, (ii) Consistent organic growth through cycle, (iii) Return of EBITA margin momentum, (iv) Strong performance vs. sector on HOLT© metrics, and (v) Limited earnings sensitivity vs. UK Capital Goods sector peer group. [Credit Suisse]"