Barclays starts Jimmy Choo at 'overweight', strong growth seen
Shares in the fashion retailer Jimmy Choo rose on Thursday after Barclays initiated coverage with an 'overweight' recommendation and a price target of 208p on expectations for stronger growth than its sector peers.
Banks
4,085.64
12:24 29/04/24
Barclays
206.05p
12:25 29/04/24
FTSE 100
8,178.18
12:25 29/04/24
FTSE 350
4,491.63
12:25 29/04/24
FTSE All-Share
4,444.80
12:25 29/04/24
Barclays predicted earnings per share would grow at an average pace of 14% over the next five years thanks to store openings with like-for-like growth reaching between 4 and 5% per year.
By 2020, the shoe retailer was also expected to boost its margins on an earnings before interest, taxes, depreciation, and amortization basis from 16.8% to 20.8%.
According to analysts, the luxury footwear market has benefited from accessible pricing, the trend to accessorise, increased retail space and a rise in menswear.
"We see the brand as well positioned with a sub-3% market share in the shoe category, one of the fastest growing and most fragmented luxury segments with a substantial amount of white space," the broker added.
Shares were up 2.67% to 160.99p on Thursday.