Shares in fashion retailer Next climb 1.3 percent,amoung the top risers on the FTSE 100, with tradersciting an HSBC upgrade to "overweight" in a note in which thebank highlights stocks a strong position to gain from onlinegrowth.
HSBC says that it expects the majority of general retailerswith leading market positions and well-invested online platformsto benefit from the growth in online sales over the long-term.
Short-to-medium term, it defines those best placed as thosealready deriving the highest proportion of sales from onlineand, in the case of non-specialist online business models, thosewith enough flexibility and a pro-active approach to the costbase management.
Aside from Next, whose online presence HSBC says accountsfor 35 percent of group revenues, its favourite plays in thespace are ASOS and N Brown, where onlineaccounts for 100 percent and 53 percent of group revenuesrespectively.
HSBC lifts its rating for ASOS to "overweight" whilst hikingits target price to 3,530 pence, and for N Brown, raises itstarget price to 430 pence while retaining an "overweight"rating, with shares in the pair up 3.1 percent and 0.9 percent.
For Next, the bank also lifts its target price - to 4,965pence. According to Thomson Reuters Starmine data, the meananalyst recommendation level for Next sits at a strong hold.
Reuters messagingrm://tricia.wright1.thomsonreuters.com@reuters.net
Next (NXT)
Brown Group (BWNG)
