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The City view - Halfords
Archived article dated Monday April 20th 2009
Investec Securities has upgraded its recommendation on Halfords following the strong performance shown in its pre-close update last week.
The broker has moved its rating on the business from 'Hold' to 'Buy' after Halfords delivered an improved like-for-like trend and further gross margin uplift in its Q4 numbers. Investec also points to the likelihood of further cost savings being achieved by Halfords management.
This prompted the broker to increase its current year pre-tax profits forecast and to also push up the outer year estimates by 3% as well as upgrading its rating to 'Buy'. Investec has also increased its target price on Halfords from 275p to 365p as it believes the discount to the sector for 2009 is unjustified. This compares with an underlying share price of 331p following the 5% increase in early trading today (April 20).
Tagged as: halfords | city broker view
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