Deutsche Bank has lifted its rating on Wickes, the home improvement retailer, arguing that the risk to its profits has receded on the back of stronger trading.
The broker moved the stock to "hold" from "sell" and raised its price target to 210p from 165p.
The shares closed on Wednesday at 192.8p.
Analyst Benjamin Yokyong-Zoega said the downside to earnings was now cushioned by better current trading and a growing pipeline of projects, drawing on Deutsche Bank's own survey data.
He pointed to weaker demand for big-ticket purchases as a lingering cyclical drag, and said rising inflation was doing little to help consumer confidence.
Even so, he praised the company's business model, management team and value-focused brand, and said he expected Wickes to keep taking market share in a difficult sector.
Company guidance implies profit before tax will grow by about 20% in the second half.
The analyst said that looked achievable, supported by improving like-for-like sales, a measure that strips out the effect of new store openings, and further cost savings.
Wickes shares have fallen 18% so far this year.
They trade on 10.8 times forecast earnings for the 2026 calendar year, against 11.4 times for its larger rival Kingfisher, the owner of B&Q.
