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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Carphone Warehouse - New broker price target: £5

June 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CPW
  • Price:
  • 382p
We've almost lost count of the number of times Carphone Warehouse (CPW) has guided analysts’ forecasts upwards since its de-merger (it's at least three times), with the latest update on 5 May stating full-year eps will now be 14.5p-15p. In Q4 CPW Europe saw like-for-like revenue down 1.7% against strong comparatives, while its joint venture, Virgin Mobile France, delivered 161,000 net customer additions (exceeding guidance of 50-100,000) taking total net additions for the year to over 200,000.However, the real swing factor was Best Buy Mobile US, where Q4 connections rose 25.9% to 1.8m. For the full-year connections grew 28.2% to 7.1m, while full year profits are expected towards top of guidance of £90m-£1 ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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