Numis stays positive on Mothercare
Numis Securities is staying upbeat on Mothercare's prospects after the baby goods retailer said its lacklustre UK business was showing signs of improvement.
Mothercare
5.75p
16:55 25/04/24
Mothercare said on Thursday that UK like-for-like sales were up 1.5% against a 1.4% fall last time while the group moved back into the black with a £5.5m profit. It said it was improving the quality and presentation of its products, helping it to fend off cut-price competition from supermarkets and online retailers.
Numis, which has an 'add' recommendation on Mothercare, said it was taking a sum-of-the-parts approach to valuing the shares and remained positive on the stock.
"We think a normalisation of the competitive backdrop, coupled with a more pragmatic, retail-based approach, should significantly reduce the UK operating loss over the next few years, allowing investors to focus on the successful international business," the broker said.
Mothercare shares rose 4.75p or 2.7% to 178p at 14:47 in London.