Broker snap: Panmure hikes target price for Next

Panmure Gordon has hiked its target price for Next by a tenth and kept its 'buy' rating for the stock after the High Street retailer's decent second-quarter update and increase to profit guidance.Brand Sales in the second quarter were up 2.4%, which Panmure said was broadly in line with forecasts against a tough comparative (second-quarter sales rose 7.6% the year before).Meanwhile, the company's forecast range for full-year pre-tax profit has been narrowed and raised from £615-665m to £635-675m. Panmure has raised its own estimate by 1.3% to £663.6m.The broker said: "Our 'buy' rating is based on our long-term view that Next will continue to be a winner in the online race, given its historic and on-going investment in home shopping, which has put it miles ahead of the competition in multichannel retail.""Next shares have ridden through our [...] price target, outperforming the market by more than 20%."As such, Panmure has lifted its target price from 4,480p to 5,530p.The shares were up 2.12% at 5,005.9p by 11:16 on Tuesday.BC