Next upgrade to a buy15 Jul 2009 09:25
Next upgraded to buy from fair value at Singer, target price raised to 1800p from 1725p
BFN
Next is still over-delivering versus expectations, says broker, 'in part due to seasonal trading conditions and in part due to strategic repositioning and easing cost pressures'.
'Although online market conditions slowed in May, we believe growth has since bounced back for Directory.'
Singer upgrades current year forecasts by a further 3.5% and next year by 3.3%. After taking into account our latest upgrade, Next trades on a 2010 PE of 10.4. 'This does not look at all stretched versus M&S, for example.'
Shares opened 17p up at 1627p.
Story provided by Business Financial Newswire