RBC Capital cuts Dr Martens target price

RBC Capital Markets cut its price target on Dr Martens on Wednesday to 85p from 100p as it lowered its estimates for FY24-26 earnings per share by 7% to 10%.

The bank said Dr Martens should be able to deliver on materially lower guided and consensus expectations for FY24, due 30 May.

The bank said Spring/Summer shipment timings could be a swing factor, however it believes Q4 DTC trends will be an important data point as well as FY25.

RBC said it expects the company’s FY25 guidance to strike a "cautious tone". It expects revenue guidance of ‘mid-single digit’ and an EBITDA guidance range of £200m to £210m, which implies mid-high single-digit growth year-on-year.

RBC rates the shares at ‘sector perform’.