logo-loader

Halfords upgraded by Deutsche, as foreign exchange headwinds ease

Published: 11:45 10 Nov 2017 GMT

1510314527_halfords
Foreign exchange headwinds are easing, says Deutsche analyst Charlie Muir- Sands

Heavyweight broker Deutsche says we're at the bottom of the currency down 'cycle' and upgrades bikes and parts company Halfords Group PLC (LON:HFD) to 'hold' from 'sell' previously.

Yesterday, the firm reported higher group revenue in its first half to September 29 but noted a £15mln dent due to the weaker pound, which increased its costs.

READ: Halfords revenues rise, offsetting impact of weaker pound

Foreign exchange headwinds are easing, says analyst Charlie Muir- Sands, and Halfords managment are confident it will meet full year consensus expectations.

"With mitigation of sourcing cost headwinds progressing, and the headwinds themselves easing, we increase our earnings forecasts 1-6%," he said.

Muir-Sands says that with recent weakness in shares, and trading for calendar 2018 at just 11 times' price-earnings, and with a 5.8% dividend yield, the broker now sees more limited downside, hence the upgrade.

On Thursday, Halfords said its retail business generated some £511mln while autocentres brought in £77.7mln, taking group revenue to £588.7mln, up from £567mln in the comparative period of 2016.

It also increased its interim dividend by 3% to 6p per share compared to 5.83p in the same period last year.

READ: Halfords names boss of Dixons Carphone's software business as its new CEO from January next year

Deutsche's price target is 295p for the shares, against a current price of 319.80p - up 2.90% on the day.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

1 hour, 1 minute ago