Card Factory (LSE:CARD) is currently being priced in for 'zero growth' and 'flat margins' going forward according to UBS, which suggests any positive comments in next week’s interims should give its share price a meaty boost.
Shares have been rallying anyway following the reinstatement of the dividend with its finals in April and at 138p currently sit at their highest since January 2020.
Christmas remains the key trading period for the cards and gifts group, so the interims are less important but UBS wants to hear progress about the impact of self-help measures underway currently.
“Overall, we forecast mid-single digit sales growth for the first half and c220bps EBIT margin dilution year-on-year.”
For the full year, UBS sees sales rising by 5% sales with EBIT margins down only 20bps to self-help initiatives and operating leverage.