Vertu Motors (AIM:VTU) secured confident backing from Stifel on Thursday, as the automotive retailer forecast annual profits ahead of market expectations amid resilient summer demand.
The shares accelerated 4.8% to 90p as Stifel reaffirmed its 'buy' rating and raised its target price to 95p following a remarkably strong five-month trading update.
At the heart of the update is a 4.6% boost in like-for-like group revenues, supported by steady retail volume and the rollout of its Value Cars strategy for older vehicles.
That momentum is being reinforced by expanding ties with Chinese carmakers, with new Omoda, Jaecoo, BYD and Leapmotor sites pushing the group's Chinese brand network to 18 outlets.
Those portfolio shifts and a surging fleet market share prompted Stifel to upgrade its adjusted pre-tax profit forecast for the 2027 financial year to £27.0 million.
That revised projection sits comfortably ahead of the £25.5 million market consensus and marks the broker's second direct estimate hike of the current trading period.
In the same note, the investment bank highlighted the retailer's disciplined capital management, projecting underlying net debt to settle between £74.0 million and £77.0 million by late August.
That robust balance sheet continues to fund ongoing shareholder returns, with the board recently repurchasing 2.4 million shares for £1.7 million under an active £12.0 million buyback programme.
Attention now shifts to the government's Zero Emission Vehicle mandate review, where automotive chiefs are pushing ministers to moderate stringent quotas that threaten to distort new car pricing.
