Cannaccord Genuity stays at buy on Ted Baker

Ted Baker clocked in with strong growth for the first 19 weeks of fiscal year 2017, with sales rising by 11.3% after a 24.2% increase in the year before, despite "challenging external trading conditions" especially in Hong Kong and mainland Europe.

That led Cannacord Genuity analyst David Jeary to reiterate his 'buy' recommendation and 3,571p target price on the shares of the fashion retailer.

Jeary noted continued strong growth at the company's e-commerce channel, with sales up by 32.3%

Wholesale has also put in a solid showing, with sales more than doubling over the course of the past three years, the same analyst said.

"Our positive view and the investment case are based on the global growth potential of the iconic Ted Baker brand," Jeary said in a research note sent to clients.

However, Jeary also pointed out how the stock was trading on calendar year 2016 price-to-earings multiple 21.2 falling to 18.9 for the following year, with the corresponding enterprise value-to-earnngs before interest, taxes, depreciation and amortisation of 13.6 and 11.3.

As of 09:53 BST shares in Ted Baker were up by 3.14% to 2,398p.