HMV

More brokers slashing their sp targets. Sorry, but I don't seem to be able to find any good news!!

21.12.06 :+0.25, (146.75) downgraded to 'equal-weight' from 'overweight' by Morgan Stanley and to 'sell' from 'hold' by ABN Amro following yesterday's profit warning, dealers said. Morgan Stanley also lowered its target to 145 pence from 185 and noted that although the shares are cheap if the entertainment market stabilises over the next couple of years, they are expensive if the market is in permanent structural decline. The broker argued that yesterday's trading statement has weakened its confidence in the former scenario, but said it believes "it would be a knee-jerk reaction to assume the latter." ABN Amro also cut its target to 130 pence from 170, noting that yesterday's trading update left the group "with limited relief from the challenges of its product markets where trends seem entrenched." The broker reminded clients that the groups share buyback plans were always conditional on Christmas and the deteriorating performance means it expects those to be at least cut back.