Peel Hunt upgrades Carpetright on improved profit forecast
Peel Hunt has upgraded Carpetright after the company more than doubled first half profits and forecast annual results towards the top end of market hopes.
Carpetright
4.96p
16:35 22/01/20
FTSE All-Share
4,374.06
16:44 24/04/24
FTSE Small Cap
6,434.18
17:09 24/04/24
General Retailers
3,926.04
17:09 24/04/24
The floor covering retailer said underlying pre-tax profit in the 26 weeks to 25 October rose by 123.3% to £6.7m on a 2.6% increase in sales to £227.9m, with pre-tax profit more than trebling to £6.7m from £1.9m a year ago. It also announced plans to revamp its brand and shops.
Peel Hunt said it was upgrading Carpetright to a 'buy' from a 'hold' with a 375p target price, up from 350p.
"The shares now look good value relative to the longer-term recovery potential. This is by no means a quick turnaround, but that longer-term potential is significant," the broker added.
Shares in Carpetright rose 38.25p or 12.2% to 351.5p at 11:46 in London.