Next Plc (LON:NXT) modestly extended yesterday’s post-results leap this morning as a raft of analyst comment saw a number of price target hikes for the clothing retailer, though the majority stayed below the current share price level.
After gaining around 8% on Thursday, the FTSE 100-listed firm’s shares were up another 1.1%, or 56p to 5,050p in late morning trading.
READ: Next shares surge as the fashion retailer lifts full-year estimates
In notes landing on clients’ desks today, the likes of Deutsche Bank, UBS, JPMorgan Cazenove, Jefferies International, and Societe Generale all raised their targets for Next shares after the group surprised with a confident first-half results statement and raised full-year guidance.
Jefferies’ analysts were the most bullish, boosting their target for the retailer to 5,200p from 4,600p, having upgraded earnings per share forecasts by 4%-6% for full-year 2019 and 2020.
But they maintained a ‘hold’ rating on the stock, noting that the shares have rallied by around 40% from its lows.
Uncertain UK consumer outlook
Meanwhile, analysts at UBS raised their target price more modestly, to 5,000p from 4,900p, but Deutsche Bank’s analysts stayed behind the curve, just hiking their target price to 4,400p from 4,150p and keeping a ‘hold’ stance as they highlighted a “continued uncertain UK consumer outlook.”
As did, those at JPMorgan, with their target for Next only raised to 4,830p from 4,580p, and a ‘neutral’ rating maintained - they think “the risks are finely balanced.”
And SocGen analysts hiked their target for Next to 4,737p, up from 4,129p previously, keeping a ‘hold’ stance too.
The French bank’s analysts said: “We are cautious on the outlook for the UK clothing market from a UK consumption perspective, even if Next’s product range and online improvements could provide a cushion against this over the year to come”.