Broker Tips: Centrica and DSGi

The first of the two, DSGi, received a positive response from Chris Walker, ahead of its strategy report to the market, in view of its cash generation and new combined PC World/Curry's stores reshaping portfolio's.

"We reiterate our Buy rating on DSGi ahead of the strategy day on 19 March and raise our price target to 49p, giving around 50 pct upside potential" he said.

"A focus on cash generation will limit re-financing risk and allow the business the optionality to pay down its £300m bond in 2012, while our working capital analysis suggests further upside opportunity to stated management targets"

Centrica, meanwhile, received a glowing report from Nomura analyst, John Musk, following its recent FY09 profits:

"We uplift 2012 EPS by 5 pct, and we now sit around 10 pct above consensus for each of the next three years" he said.

"Our target price is also increase to 370p...on the back of greater scale superior systems, a lower cost base and brand recognition [downstream Energy and Home Services]" he said.

"We now expect downstream profitability will grow from £1.0 bn in 2009 to £1.2 bn in 2012." he added,

"Management is also targetting a doubling of US EBIT in three to five years".

"Centrica remains a top pick in the European Utilities space"