MARKET TALK: Investec Neutral On UK Retail Post Budget >NXT.LN

23rd Jun 2010 11:00

1000 GMT [Dow Jones] UK retailers look to have escaped the emergency budget no worse-off than feared, says Investec Securities, "with some indications that the coalition government is mindful of the need to balance growth and spending cuts." The brokerage retains a neutral weighting on the sector. "We continue to argue that retailers' input cost inflation is generally more modest than feared and thus, while the top-line outlook is for pretty modest growth at best, with continuing pressure on higher-ticket discretionary categories, there remains some opportunity for margin expansion." Buy ratings on Next (NXT.LN), Debenhams (DEB.LN), N Brown (NBRNF) and Dunelm (DNLM.LN). Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 23, 2010 06:00 ET (10:00 GMT)