B&M is “pleasing most of the people most of the time” according to Deutsche Bank, which raised its target price by 20p to 600p.
Deutsche Bank also held its buy recommendation on the stock.
Analysts at The City arm of the German bank noted that questions about whether the discount retailer will still be benefiting from trading down were put to bed in its latest update, with like-for-like sales up 8% in the last nine weeks.
“Combined with this, management expects to see a degree of gross margin recovery from lower inventory clearance year-on-year, lower freight rates and better factory gate pricing,” the broker said.
While there has been “significant” sales volatility over the last few years, the broker believes B&M has capitalised on this.