This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Strong technical pattern in progress towards Sept 2016 highs. Recent trading update (14 Sept) saw guidance upgraded again, reviving interest in the depressed shares. Especially better cash flow ensuring special dividends. Many now wonder if the worst is behind it. A bout of cooler weather may help with earlier sales of winter wear. Looming Xmas period and new year sales could help company beat guidance. Lots of investors were caught offside with short positions (24th most shorted UK share), which obliges them to buy shares to close their positions.
Consensus remains neutral to bearish which offers potential for brokers to upgrade ratings and targets in light of the recent share price rebound and improved news-flow from the company. Especially with only 5% of broker targets suggesting upside from current levels. A re-evaluation may be necessary by the broker community now that the shares trade fresh 2017 highs.
Next Event: Ex-dividend 45p, 5 Oct; Q3 trading statement, 1 Nov
Latest Broker 12-Month Consensus: 12% Buy, 56% Hold, 32% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 2.7 | 24.1 | 29.7 | 33.4 | 5.5 | -30.0 | -25.2 | 1.3 | 50.2 |
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