Superdry PLC (LON:SDRY) is a ‘buy’ again for Liberum, which also reinstated the 300p target price from ‘under review’ over expectations of recovery.
Last week’s update was “much better than expected”, analysts said, adding the fashion retailer could come out of the crisis “in a much cleaner position that most had feared”.
READ: Superdry to reopen half of its European stores by June
The broker noted that inventory levels are lower than last year, aiding the cash position, while online sales doubled.
“There is significant recovery opportunity with autumn/winter 2020 on the horizon and as we head into financial year 2022 we see a sales and underlying earnings (EBITDA) growth between 2020 and 2022 of 4.2% and 84% respectively,” analysts commented.
Shares added 3% to 127.41p on Monday in late morning.