Stifel downgrades N Brown to 'hold' as it hits target price
(ShareCast News) - Stifel downgraded N Brown to 'hold' from 'buy' as the stock reached its 345p price target.
"While we still believe in the attractiveness of the product proposition, targeting an overlooked spot in the fashion industry, and with incredible marketing both online and offline, our 345p target price has been reached. As we do not see any element of surprise around the corner, we downgrade our rating," it said.
Stifel maintained its estimates of Financial Services FY18 sales growth to be flat year-on-year, with product sales growth of 5%, supported by the recent collaboration with Tesco whereby Simply Be and Jacamo can be bought in Eastern European Tesco stores and online at Tesco Direct.
It added that N Brown is "ready to rock" Black Friday. It noted that the period from Black Friday to Christmas represents 50% of annual sales for the group and last year it was one of the most successful trading periods for the company.
Stifel highlighted Levi's plus size line on the Simply Be website, which along with active wear and popular brands, should help N Brown in the back-to-school season and peak trade period.
At 0940 BST, the shares were down 7.9% to 319.70p.