Fashion retailer Next (LON:NXT) had its shares downgraded by Credit Suisse to ‘underperform’ (from ‘neutral’) after the company released its latest trading statement.
The broker said that it is “cautious about Next’s ability to stabilize margins in an environment of rising opex and input costs, and with Next Brand sales looking increasingly mature.”
Analysts also cut their target price to 4,600 pence a share (from 4,950 pence).
Conversely, Societe Generale upgraded its investment rating on the stock to ‘buy’ from ‘hold’ and increased its target to 6,098 pence from 5,695 pence.
It said: “Next benefits only partially from the structural strengths we look for in a retailer and is not a typical candidate for our Buy list. However, the valuation at this point is attractive, and we see newsflow regarding sales trends – the key share price driver – heading in a more positive direction from here.”
At 1:52pm: (LON:NXT) Next PLC share price was +88.5p at 5067.5p
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