Next’s (LON:NXT) share price has advanced in London in today’s session as Credit Suisse hiked its rating on the company, expecting the retailer to benefit as the UK clothing market changes. The comments come as the blue-chip group prepares to update investors on its half-year performance on Thursday.
As of 14:48 BST, Next’s share price had gained 1.12 percent to 6,128.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.32 percent lower at 7,343.60 points. The group’s shares have added more than 14 percent to their value over the past year, as compared with about a 0.7-percent gain in the Footsie.
Credit Suisse lifts rating on Next
Credit Suisse lifted its rating on Next from ‘underperform’ to ‘neutral’ today, and hiked its price target on the shares from 5,600p to 6,000p. Proactive Investors quoted the analysts as predicting that the FTSE 100 company’s Label platform will be a crucial tool with consumers increasingly favouring multi-brand shops.
“When demand is increasingly driven by online/social media engagement, rather than footfall, we see consumers increasingly favouring smaller brands and multi-brand distribution,” the broker elaborated, adding that while many brands are boosting direct to consumer channels, ‘even the largest’ will be reliant on third parties for at least 60 percent of distribution.
“Next Label as a platform has good potential as the industry consolidates and Next Retail is benefitting from downsizing and under performance of peers,” Credit Suisse concluded.
Other analysts on FTSE 100 retailer
The 18 analysts offering 12-month targets for the Next share price for the Financial Times have a median target of 5,750.00p, with a high estimate of 7,100.00p and a low estimate of 4,400.00p. As of September 13, the consensus forecast amongst 23 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.