Broker Shore Capital has reiterated its 530p price target on H&T Group PLC (AIM:HAT) stock following the pawnbrokers latest trading update.
“Overall, we view this as a solid trading update with no changes made to our full year forecasts ahead of the interim results that are scheduled for release on 20 August,” said analysts at the broker.
They continued: “Although pawnbroking may be viewed as a countercyclical business and so a beneficiary of recent UK economic malaise, we believe there are also strong structural underpinnings to its growth story given the underserved nature of its customer base and scope for ongoing geographical expansion.
“In addition, we think retail and FX are both businesses that should benefit from any pick-up in economic activity, post the recent change in government.”
Shore Cap's full-year forecast assumes a 13% growth in the accounting value of the pledge book, with sequential growth of approximately 8-9% in the second half of the year.
H&T shares closed at 388p on Tuesday.
--UPDATED to correct broker details--