LONDON (ShareCast) - (ShareCast News) - Things are still looking up for B&M Retail's share price, Jefferies argues ahead of the company's interims, pointing to the firm's solid scores on customer satisfaction and the potential for its acquisition of Heron Foods to add to growth.
In a survey of 3,000 UK consumers, the broker found that the retailer was still gaining new clients, with its net promoter score rising for both groceries and homeware, which it said was a good omen for future market share gains.

The recent purchase of Heron Foods was also promising, it said, opening the door to the prospect of a North-to-South 'B&M style' roll-out strategy which implied scope for more than 1,500 stores.

It also offered the potential to leverage the 'know-how' acquired on how to sell frozen foods as US rivals Dollar General and Big Lots had done.

So despite the shares having outperformed the wider sector by 50% year-to-date, Jefferies revised its target price on the stock to 470p, from 415p, while keeping its recommendation at 'buy'.

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