Carphone Warehouse Shares Plummet Amid Profit-Taking

Despite a 42% surge in first-quarter revenues, fueled by strong demand for its broadband product, which has attracted 476,000 applications, Carphone Warehouse saw its shares drop 13 3/4p to 271 3/4p. Analysts remained upbeat on the group's progress, with one predicting that the recent acquisition of The Link by O2 will help to lessen competition on the high street. A revised rating from Deutsche Bank, changing its stance from "hold" to "buy" with a maintained 345p target price, failed to lift the phone group.

Key Takeaways:

• Carphone Warehouse reported a 42% surge in first-quarter revenues, with its broadband product attracting 476,000 applications.
• Analysts remain optimistic about the group's progress, particularly in light of the acquisition of The Link by O2.
• Deutsche Bank revised its rating, changing from "hold" to "buy" with a maintained 345p target price, but it failed to boost the shares.
• Carphone Warehouse's core retail chain is showing steady growth, with analysts predicting further success in the future.
• Premier Foods announced the pricing of its planned rights issue at 185p a share, aiming to raise £458.5 million to fund the purchase of Campbell Soup Company's UK and Ireland business.
• Soco International saw its shares increase 81p to £13.75 following Merrill Lynch's initiation and £15 target price.

Statistics:

• 476,000: the number of applications for Carphone Warehouse's broadband product.
• 42%: the surge in first-quarter revenues at Carphone Warehouse.
• 345p: Deutsche Bank's maintained target price for Carphone Warehouse shares.
• £458.5 million: the amount raised by Premier Foods from its planned rights issue.
• £15: the target price agreed upon by Merrill Lynch for Soco International.
• 78 1/2p: the increased price of Henderson Group shares after announcing a planned return of £200 million to shareholders.

Sources:

• "The Times, 2006" (no date or issue specified)
• "Deutsche Bank"
• "Merrill Lynch"