Citi said it had taken a 'more constructive view' on the outlook for Next PLC (LSE:NXT) as upgraded its call on shares in the retailer citing an improving economic backdrop and the clothing retailer's surplus cash for the change of heart.
Moving to 'neutral' from 'sell', the American investment bank told investors: "We believe Next is well placed to benefit from a more positive UK consumer environment, with real wages now positive for three quarters and improving consumer confidence."
Along with the recommendation change, Citi raised its price target for Next shares to £91.20 from £65.
In afternoon trading, Next was up 120p, or 1.4%, at 8,794p.