Morse shares slump on 'challenging' outlook

NEWS Morse, Europe's largest Sun and HP reseller, has seen its share price take a nasty knock after warning that its trading outlook continues to look bleak. In early trading this morning, shares were off by more than seven per cent after the company's chairman, Richard Lapthorne, warned of challenging times. Analysts reduced their estimates in May when Morse issued a profit warning. However, the company came in at the higher end of those expectations to hit profits of £35.8m, compared with £32.1m last year. Revenues were also up by 16 per cent from £506m to £586m. Analysts from Merrill Lynch, quoted on news wire AFX, believe that Morse is an undervalued stock compared with its UK rival Computacenter. Morse's woes will be made worse by last night's news that Sun will miss targets for its first quarter because of weak sales in Europe and Japan.
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