(Sharecast News) - Next's trading was probably strong in the second quarter and an upgrade to the company's guidance looks likely but the fashion chain is fairly valued, Jefferies analysts said ahead of a trading update next week. The FTSE 100 company, led by chief executive Simon Wolfson, will have benefited from demand for summer clothes during the heatwave, Jefferies said. Next reports on second-quarter business on 1 August,The Jefferies analysts, led by James Grzinic, increased their annual pre-tax profit estimate for Next by 1% to £731m. The team increased its target price on Next shares to £61 from £52 but stuck with its 'hold' recommendation.Jefferies expects full-price brand sales growth to slow to 1.7% in the second quarter from 4.5% in the first quarter as the effect of botched buying a year earlier fades.If Next's update on prospects for annual profit is positive it will be received well by investors but the prospects for medium-term profit growth are unchanged, the analysts said."We believe that Next still attributes much of this year's strengthening market share performance to the recovery of 17/18 self-induced ranging mistakes," the analysts wrote. "We believe a more sustainable build in the valuation context is unlikely to materialise if (as?) trading momentum slows in the latter stages of 2018."