Deutsche Bank sees Moonpig Group PLC (LSE:MOON) as a "compelling opportunity", maintaining its 'buy' rating and a 290p price target.
It believes the online card card and gift retailer is well-positioned for double-digit revenue growth, helped by rising stamp prices and increasing international momentum, which reduce pressure on its UK business.
However, challenges remain in key areas. Deutsche has lowered its forecasts for Moonpig’s Dutch subsidiary, Greetz, where web traffic has slowed, and for its Experiences division, which it says needs a more substantial revamp.
While spending on travel and leisure is rising, Moonpig has yet to fully capitalise on the opportunity.
Despite these hurdles, Deutsche Bank remains positive about Moonpig’s prospects, particularly as its core UK market continues to perform well.
With a supportive market environment and strong brand positioning, the bank sees potential for further gains, provided the company can address weaknesses in its international operations.
In afternoon trading, the shares were up 1.4% at 226p.