LONDON (ShareCast) - (Sharecast News) - Royal Bank of Canada increased its price target for Superdry shares but cut its rating to 'sector perform' after the shares more than doubled over the past three months.
RBC analyst Richard Chamberlain said Superdry's strategy of more full-price sales, better products and customer engagement was about right but that, despite a segmented range, the fashion brand might struggle to appeal to different age groups.

Superdry has increased online sales during the pandemic and they now make up about 40% of retail sales. The company has also. upped its social media activity to create a buzz about its collections, Chamberlain said.

Chamberlain increased his target price on Superdry shares to 300p from 200p and cut his rating to 'sector perform' from 'outperform' with the company's valuation broadly in line with the historical average.

"We think execution risk is higher than average and following a strong run in the shares, valuation is not so compelling now," Chamberlain said in a note to clients.

Superdry became a trendy brand in the early 2010s worn by David Beckham, Kate Winslet and other celebrities but the company lost its way. Founder Julian Dunkerton is back in charge as chief executive and is trying to revive the brand.

The company's shares fell 3.6% to 271p at 10:49 GMT. They have risen from 133p on 4 September.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE