Mulberry Group Share News (MUL)

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Share Price Information for Mulberry Group (MUL)

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131.50 4.00 (3.14%)

Bid:

128.00

Ask:

135.00

Spread: 7.00 (5.469%)

Market Cap: £92.26m

Last checked at -

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Broker snap: High expectations for Mulberry

Thu, 09th Dec 2010 12:08

Broker finnCap has substantially increased its target price for luxury goods group Mulberry as the group continues to outperform revenue and profit expectations.The upmarket handbag maker's impressive interims, with pre-tax profit of £5.7m beating the finnCap's estimate of £4m, prompted the broker to lift its target price for the stock sharply from 490p to 1,040p."This outperformance was restrained by inventory shortages, although even that cloud had a silver lining: gross margin widened from 55.0% to 63.9%," said analyst David Stoddart.As the second half has started well, the broker's pre-tax profit forecast for 2011 is increased by 15.6% to £15m and earnings per share by 36.9% to 17.8p. What's more, Stoddart says the upgrades may not mark the end of the upgrade cycle this year as the increases cover only the outperformance in the first half.The broker remains a 'buyer' as it continues "to regard the global potential for the brand as substantial".