Prime Markets has labelled carpet and flooring retailer Carpetright as a 'buy', saying that group's solid UK growth should confound any critics.

"Once again, evergreen floor coverings giant Carpetright confounds the critics by revealing a 3.2% hike in UK sales. The results throw scorn at those who say traditional High St retailing is dead, and also mocks those analysts who continue to say the company is overvalued," said Prime Markets' head of dealing Richard Curr.

"Carpetright enjoys a dominant position in its markets, and while sales in Europe continue to underperform, the UK, which accounts for 80% of sales is showing the way forward. The fundamentals are also supported by a bullish charting configuration, with the price action taking place above converging triple support (including a gradually rising 200-day line) indicating a break higher is likely."

The broker expects this breakout to test the 700-701p level in the next week or so, and forecasts an eventual return to year-highs of 753p.

Despite the bullish comments, the shares were trading 0.44% lower at 680p by 10:49 on Tuesday.

BC

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