Shares in Frasers Group PLC (LSE:FRAS) were up 1.5% after a strong first half in which it reset earnings guidance.
The Sports Direct owner, controlled by controversial retail mogul Mike Ashley, recorded a pretax profit of £186mln, up 75% from a year earlier when, admittedly, the high street and retail parks were hit hard by the pandemic lockdown.
It said expects full-year earnings to be in the £300mln-£350mln range for the year.
The stock responded positively to the update, rising 11.5p to 718.5p.
Liberum reckons the shares are worth 900p (up from 850p).
In a note to clients, it said: “Frasers’ strategic foundations are now firmly in place driving yet another impressive set of results, which are standout considering the current environment."
The City broker added that the “valuation looks cheap when considering the strong momentum, cash generation and a potential sum-of-the-parts factoring in core UK Sports, the value building within Flannels, the strategic stakes (Hugo Boss, Mulberry) and the other key brands”.