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WIX Wickes News Story

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Consumer CyclicalsBalancedMid CapContrarian

UK retailers fall as Deutsche Bank cuts ratings on weaker consumer spending

BUZZ-UK retailers fall as Deutsche Bank cuts ratings on weaker consumer spending

** Shares in UK retailers slip after Deutsche Bank downgrades ratings as consumer spending and confidence weakened in recent months

** DB says the biggest debate is whether the sector is in a "calm before the storm" as inflation hits spending and margins, or a "storm in a teacup" at the trough of negative newsflow

** Analyst Adam Cochrane says while spending and confidence have weakened, the backdrop is not a repeat of 2022, with companies better hedged on energy, supply chains more stable, and freight costs manageable

** Shares in B&M BMEB.L, Currys CURY.L, Dunelm DNLM.L, Wickes Group WIX.L down between ~3% to 4%

** Brokerage downgrades B&M to "Sell" from "Hold"; cuts PT to 155p from 175p

** Cuts Currys to "Hold" from "Buy"; lowers PT to 150p from 155p

** Downgrades Dunelm to "Hold" from "Buy"; slashes PT to 850p from 1,200p

** Cuts Wickes to "Sell" from "Hold"; lowers PT to 165p from 235p


(Reporting by Nithyashree R B in Bengaluru)

((NithyashreeRB@thomsonreuters.com))

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