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Next share price: HSBC sees retailer as ‘well placed’ in sector’s structural shift

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HSBC sees Next (LON:NXT) as ‘well placed’ to manage the retail sector’s structural shift to online, WebFG News has reported. The comments came as the analysts turned bullish on the blue-chip retailer.

Next’s share price has fallen deep into the red in today’s session, pressured by downbeat retail sales data and the resignation of Brexit Secretary Dominic Raab. As of 13:43 GMT, the shares were changing hands 6.18 percent in the red at 5,040.00p, underperforming the benchmark FTSE 100 index which currently stands 0.08 percent higher at 7,039.16 points.

HSBC turns bullish on Next

HSBC lifted its rating on Next from ‘hold’ to ‘buy’ yesterday, and hiked its price target on the shares from 5,700p to 6,050p. WebFG News quoted the broker as saying that amid the fallout in the UK department store sector, the blue-chip retailer  could also become the ‘marketplace of choice’ for UK apparel online as third-party brands look for distribution, with overseas growth offering further potential.

“While sector headwinds remain, Next is well placed to manage the structural shift to online and has hedged its USD sourcing exposure for 12-18 months, mitigating short-term Brexit-related FX-volatility,” the broker explained.

The comments follow Next’s third-quarter results at the end of last month when the blue-chip group revealed a two-percent rise in full-price sales, with a 12.7-percent gain in online sales helping offset an eight-percent drop in retail sales. 

Other analysts on retailer

The 17 analysts offering 12-month price targets for Next for the Financial Times have a median target of 5,600.00p, with a high estimate of 6,600.00p and a low estimate of 4,100.00p. As of November 14, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group advises investors to hold their position in the company. 

As of 13:52 GMT, Thursday, 15 November, NEXT plc share price is 5,040.00p.

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