RE: Just an observation .......................20 Nov 2022 10:06
DYOR...............
Wickes Group is a retailer supplying products for home improvement and gardening. The company owns more than 200 stores in the UK and is known for its DIY range.
The company, in its recently issued trading update for the six months ended in July, reported a 5.4% increase in like-for-like sales. On the flip side, it is facing headwinds with rising inflation and also lowered its profit guidance for the full year to £72-£82 million.
The company is confident in its local business growth, where it enjoys a leading position. Moreover, with the rise in residential construction in the UK, companies like Wickes will benefit.
The stock has fallen almost 50% in the last year, but the analysts have not lost hope and maintain a Strong Buy rating. The Wickes Group target price is 236.6p, which has an upside potential of 102%.
Wickes is also a great addition to passive income, as it carries a dividend yield of 9.18% as compared to the sector average of 1.65%.