Naked Wines Plc (LON:WINE) was upgraded to ‘buy’ from ‘hold’ by Peel Hunt as analysts believe sales expectations are likely to be exceeded short term.
The broker said the wine retailer’s US business is thriving after the population noticed wine can be bought online during lockdown, while the UK “continues to excel”.
WATCH: Naked Wines PLC sees acceleration in growth within US market, sales up 75%
In fact, sales rocketed 81% during lockdown, 67% in June and 76% in July.
“The marketing investment required perversely means there is a profit downgrade today, but the shares are all about sales and new recruits, and it is all good news from that perspective,” analysts commented.
“Our sales numbers are now 5-10% above guidance and consensus, and even that could be conservative if the rate of recruitment and retention persists.”
Shares rose 1% to 435.02p on Tuesday late morning.