After Sports Direct's joint broker, Merrill Lynch, yesterday slapped a sell note on the company, it was Debenhams' turn to be downgraded by one of its advisors.
In a 12-page note, Citigroup - one of the banks which helped float Debenhams at 195p last year - cut its price target from 115p to 90p and reduced its full-year forecast by 3.5%.
"Our [earnings] cut is in line with our general downwards move in forecasts, reflecting the increasingly clear evidence of a UK high street slowdown," said Citi. "In particular we note that UK clothing has had a poor October and November."
It added that any consumer slowdown on the high street "has above-average risk for
Debenhams given its high financial leverage".
Meanwhile, over at Mike Ashley's Sports Direct, its shares slipped another 1.25p to 95.5p. Oh to be a fly on the wall next time Merrill talks to Ashley.
