Next (NXT)

Sector:

Retailers

Index:

FTSE 100

9,232.00p
   
  • Change Today:
      44.00p
  • 52 Week High: 9,298.00
  • 52 Week Low: 6,346.00
  • Currency: UK Pounds
  • Shares Issued: 127.13m
  • Volume: 175,988
  • Market Cap: £11,736m
  • RiskGrade: 153

Berenberg upgrades Next to 'hold', sees better trading and lessened risks

By Alexander Bueso

Date: Wednesday 21 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg moved back from a 'sell' recommendation to 'hold' for shares of Next, pointing to positive read-across on trading conditions from sector peers, an improved macroeconomic environment and lessened competitive risk to back up their move.

But there was a caveat, structural pressures would remain.

Primark UK had achieved "very strong increases" in like-for-likes over the three months to June and at Asos UK they had jumped by 58%, both on a two-year basis, the German broker pointed out.

Together with a 19% surge in full-price sales over the three weeks since reopening on 12 April, Berenberg judged that there was upside risk to guidance.

Furthermore, Berenberg no longer expected the risks from rival Zalando's entry into the UK or from a a subdued macro environment would negatively impact Next's share price given that they were now less likely to play out.

And then there was the caveat.

The structural pressure from the channel shift was still expected to drag on the performance of its c490 UK stores.

Rivals had closed stores in response but Next could not do that because it collected half its orders and about fully 85% of its returns were made through those same stores.

"A restructuring programme would likely either harm online growth or have to be combined with a shift to free delivery, causing a margin rebase," the analysts said.

Berenberg also revised its forecasts for Next's earnings before interest and taxes in 2022 and 2023 higher by approximately 10%.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Next Market Data

Currency UK Pounds
Share Price 9,232.00p
Change Today 44.00p
% Change 0.48 %
52 Week High 9,298.00
52 Week Low 6,346.00
Volume 175,988
Shares Issued 127.13m
Market Cap £11,736m
RiskGrade 153

Next Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
76.59% below the market average76.59% below the market average76.59% below the market average76.59% below the market average76.59% below the market average
78.95% below the sector average78.95% below the sector average78.95% below the sector average78.95% below the sector average78.95% below the sector average
Price Trend
90.17% above the market average90.17% above the market average90.17% above the market average90.17% above the market average90.17% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
19.04% below the market average19.04% below the market average19.04% below the market average19.04% below the market average19.04% below the market average
44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average
Growth
28.56% above the market average28.56% above the market average28.56% above the market average28.56% above the market average28.56% above the market average
65.00% above the sector average65.00% above the sector average65.00% above the sector average65.00% above the sector average65.00% above the sector average

What The Brokers Say

Strong Buy 2
Buy 4
Neutral 13
Sell 1
Strong Sell 1
Total 21
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Next Dividends

  Latest Previous
  Final Interim
Ex-Div 04-Jul-24 07-Dec-23
Paid 01-Aug-24 03-Jan-24
Amount 141.00p 66.00p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 6 @ 9,232.00p
16:35 126,222 @ 9,232.00p
16:35 1 @ 9,232.00p
16:35 109 @ 9,232.00p
16:35 47 @ 9,232.00p

Next Key Personnel

CEO Wolfson Aspley Guise
Finance Director Amanda James
Chair Michael J Roney

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