Next share price: RBC Capital weighs in on retailer

on Apr 17, 2019
Updated: Mar 11, 2020

RBC Capital has reaffirmed its ‘outperform’ rating on Next (LON:NXT), lifting its valuation on the stock ahead of the group’s first-quarter trading statement due out on May 1. The move came after Jefferies reiterated its ‘hold’ stance on the high street retailer this week, expecting the company to have enjoyed a ‘strongly weather-boosted start’ to its new financial year.

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Today’s trading has seen a rise in the Next share price, with the shares changing hands 0.56 percent higher at 5,764.00p as of 13:45 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent higher at 7,465.55 points. The retailer’s shares have added more than 11 percent to their value over the past year, as compared with about a 3.8-percent gain in the Footsie.

RBC lifts target on Next share price

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RBC, which rates Next as an ‘outperform,’ lifted its valuation on the shares from 5,700p to 6,200p today. Proactive Investors quoted the analysts as pointing to “slightly higher long-term sales assumptions and lower long-term capital expenditure assumptions” with the company moving its sales online and cuts costs by shutting stores.

“Next will report a first quarter trading statement on May 1, when we should see continued double-digit sales growth online, with retail like-for-like down mid to high single-digit, but an improvement on the run rate in the second half,” the broker pointed out, as quoted by the newswire.

Jefferies meanwhile forecasts Next first-quarter sales growth of 3.7 percent, made up of a 13.2-percent rise in online sales and a 5.4-percent decline in in-store sales.

Other analysts on blue-chip retailer

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Shore Capital reaffirmed Next as a ‘hold’ last month, without specifying a price target on the shares. According to MarketBeat, the blue-chip retailer currently has a consensus ‘hold’ rating and an average price target of 5,399.09p.

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