Broker snap: Panmure downgrades Regus but stays positive

LONDON (ShareCast) - Investors in international office space supplier Regus (Berlin: RGV.BE - news) were clearly buying today in spite of Panmure Gordon's recommendation to hold the stock, after taking away its buy rating this morning. The broker said that the downgrade comes after a strong relative outperformance (to the sector) during the last three months ("albeit we believe some of this was due to the shares being initially oversold"). "However, we think the shares may pause for breath in the near term", predicts the broker. "While the company does look well positioned for significant growth in the next cycle, current macro uncertainties could limit near term upside, hence our now more neutral stance on the shares," Panmure said. Nevertheless, the broker still expects Regus to deliver on full-year market forecasts, with growth expected for 2012. It says that it remains comfortable with the long-term story. With the broker maintaining its forecasts, the target price is left at 90p. BC