Brokers note - Halfords
Credit Suisse has reiterated its 'Outperform' rating and increased its forecasts and target price on Halfords following its trading update.
The broker has pushed up its pre-tax profits forecasts by 9.9% to £105 million for 2010 and by 9.5% to £110 million for 2011 on the back of the group’s better than expected resilience to the current difficult market.
Credit Suisse believes the undemanding valuation on Halfords, with its PE of less than 11x earnings for 2010, warrants an increase in target price so it ups its number by 11% to 440p. This compares with an underlying share price of 395p.
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