Next surpassed forecasts with its first-quarter sales update on Wednesday, though Investec maintained a 'hold' rating on the stock.The Anglo-South African bank said that the high street fashion and homeware retailer remains a "core holding" but pointed out that the stock is trading at 17 times current-year estimated earnings, compared with the wider sector at a multiple of 16.5."A positive Q1 trading update should be positively viewed: full-price growth of 3.2% benefitted slightly from the timing of a new range launch, but remains ahead of consensus, and the exit rate likely to have picked up as trading conditions improved," said analyst Alistair Davies.Investec had pencilled in a 1.5% increase in full-year price brand sales, while the consensus forecast was for growth of 2%."Directory performance is encouraging given caution on credit customer file at prelims, with additional growth angles (cash/label/international) underpinning numbers in our view," Davies said.Investec's full-year pre-tax profit forecast of £833m sits at the top end of company guidance of £785m-835m.With the shares remaining above Next's buyback price limit of 6,827p over the first quarter, the company did not repurchase stock during the period but announced that it would pay a special dividend of 60p a share in August.Davies said that, based on existing guidance of surplus cash returns of £360m, there is scope for a further 70p-a-share payout in the second half.The broker maintained a 7,000p target price for the stock, which was up 2.8% at 7,367.2p by 11:19.