Ted Baker PLC (LON:TED) shares got a boost on Tuesday after analysts at HSBC Securities initiated coverage on the FTSE 250-listed fashion firm with a ‘buy’ rating.
The global banking giant’s analysts also set a 2,900p price target on the stock, which was trading at 2,286p a share in late morning trading, up 3.8% on Monday’s close.
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In a note to clients, they said: “We see strong global potential including EM (emerging markets) and online accessed via a flexible, low risk multi-channel operating model.”
The analysts added: “We forecast an inflection point in the rate of growth in cash generation from FY19e and earnings from FY20e”.
They also pointed out that Ted Baker shares are down around 40% from a three-year peak.