Stock Market News
Jefferies downgrades Ted Baker, RBC Capital reiterates 'outperform'
Fashion retailer Ted Baker was under the cosh on Thursday as Jefferies cut its stance on the stock to 'hold' from 'buy' and dropped the price target to 2,700p from 3,000p.
The bank said Ted's strategy to moderate growth in a tough environment is the right thing to do to protect the long-term strength of the brand. However, with top line growth pared back and Jefferies' three-year profit before tax growth expectations reduced from 16% to 13%, it cut the target price and downgraded.
"The brand's unique quirkiness, quality offering at affordable prices and meaningful international growth prospects remain attractive features of the group. However, given the near-term unseasonal weather in the US/Europe and management's cautious guidance, we believe the historical sales momentum underpinning the equity story will prove more elusive in the near term."
As Jefferies downgraded, RBC Capital Markets reiterated its 'outperform' rating on the stock, saying the equity story remains one of "measured international expansion, stable/slightly improving margins and e-commerce led growth".
Although the bank acknowledged that the apparel market faces some challenges at present, it said Ted's forecasts are underpinned by growth in retail and wholesale, with both channels presenting perimeter expansion opportunities.
Earlier this month, shares in the company slumped after it posted a jump in full-year profit but warned that external trading conditions would remain challenging across many of its global markets.
At 1105 GMT, the shares were down 2.8% to 2,542p.
The bank said Ted's strategy to moderate growth in a tough environment is the right thing to do to protect the long-term strength of the brand. However, with top line growth pared back and Jefferies' three-year profit before tax growth expectations reduced from 16% to 13%, it cut the target price and downgraded.
"The brand's unique quirkiness, quality offering at affordable prices and meaningful international growth prospects remain attractive features of the group. However, given the near-term unseasonal weather in the US/Europe and management's cautious guidance, we believe the historical sales momentum underpinning the equity story will prove more elusive in the near term."
As Jefferies downgraded, RBC Capital Markets reiterated its 'outperform' rating on the stock, saying the equity story remains one of "measured international expansion, stable/slightly improving margins and e-commerce led growth".
Although the bank acknowledged that the apparel market faces some challenges at present, it said Ted's forecasts are underpinned by growth in retail and wholesale, with both channels presenting perimeter expansion opportunities.
Earlier this month, shares in the company slumped after it posted a jump in full-year profit but warned that external trading conditions would remain challenging across many of its global markets.
At 1105 GMT, the shares were down 2.8% to 2,542p.
Related share prices |
---|
Ted Baker (TED) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price