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Homestyle - Investec issue buy note and set 170p price target

November 2003

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.

The shares have moved ahead on high volume ahead of an imminent pre-close trading statement. In a note issued on 22 October, broker Investec has also upgraded its view from Hold to Buy and has an expectation that the gap in the rating with Homestyle's peers is about to close, suggesting a 170p price target. Investec has becomeincreasingly confident that the initiatives put in place by managementare coming together and that like-for-like sales will shortly reverseearlier declines. The positives include a total change in Harveysupholstered ranges, of which 70%  will be new by the end of thepeak Christmas trading, as well as improved store layouts and improvedadvertising. The forecast is eps of 19.3p for the current year ...

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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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