Superdry PLC (LON:SDRY) shares rose on Friday as City broker Liberum Capital upgraded its rating to ‘buy’ from ‘hold’ and left its price target unchanged at 1,350p.
In a note to clients, analysts at Liberum said the shares have fallen 33% and de-rated 37% over the past six months, but the share price fall offers better value.
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The analysts also said that cash generation has been negatively impacted by rising inventory levels in recent years as initiatives to improve the supply chain and distribution infrastructure have been implemented.
The analysts said: “We remain mindful of the risks, including slower growth and earnings visibility.”
In lunchtime trading, Superdry shares rose 0.8% to 1,179.0p.