Citigroup says sell Carphone Warehouse stock.

I love this.

Not everyone is convinced it will be a brave new dawn for the company. The US investment bank Citigroup released revised forecasts yesterday to include the AOL acquisition, and reiterated its “sell” recommendation on the back of the new numbers. The broker highlighted increased net debt of approximately £610m, from £306m, increasing interest payments. It also believes its 235p price target assumes “near perfect” execution of the group’s broadband expansion – generating 1.8 million subscribers, successfully rolling out 1,000 unbundled local exchanges and maintaining average revenue per user. In what is becoming an increasingly crowded market place, Citigroup believes that the current price discounts too many risks.

Market Report: Make-or-break time for Carphone Warehouse

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