Berenberg: Superdry targets are ‘ambitious’29 Sep 2021 07:01
A leap of faith is required to hold shares in fashion brand Superdry (SDRY), according to Berenberg.
Analyst Michael Benedict reiterated his ‘hold’ recommendation and increased the target price from 235p to 280p on the stock, which closed down 3.2%, or 9p, at 274p on Tuesday.
Its 2021 financial year was ‘heavily disrupted’ and the top-line development remained subdued in the first half of 2022 but ‘this did come alongside a shift towards a full-price stance, particularly in the e-commerce channel’, said Benedict.
The group has ‘ambitious’ medium-term targets including pushing revenues past the historic peak of £872m in the next three to four years and achieving low double-digit operating margins, according to the analyst.
‘Ultimately, should management deliver on its medium-term targets, there is likely significant upside to the current share price,’ Benedict said.
‘However, we remain cautious about the achievability of such targets.’