Halfords Group PLC (LSE:HFD)'s shares fell 4.9% after RBC Capital Markets downgraded the stock and cut its price target.
The broker thinks Halfords remains a strong player in a space that has seen a number of challenges across the last few years.
Near-term it should it should benefit from market recovery and digital/data driven gains, “but we believe execution risks remain.”
Following the recent re-rating RBC sees the valuation as “fair,” hence the move to sector perform from outperform.
EPS forecasts for the next two years have been reduced by around 3% “given slightly lower margin expectations due to softer cycling sales and labour cost pressures.”
The price target moves to 220p from 230p.
Shares were 4.9% lower at 192.17p.