Broker snap: Pessimistic expectations for HMV

Morgan Stanley has maintained its 'underweight' recommendation on video games, music and DVD retailer HMV following its consumer survey, which suggests video games demand will remain lacklustre. The broker said its survey indicated that more people plan to conduct their video game shopping at supermarkets and online retailers, while high street specialists lose out despite competitors dropping like flies.'Our findings support our pessimistic expectations for HMV, as 20% of UK sales are video games and while we already expected a declining market we are now also concerned about these channel trends,' the broker said.Morgan Stanley continues to prefer overweight-rated Next and Debenhams. HMV's 95p price target implies a 15% downside, it added. Next