Halfords Group (HFD)

Sector:

Retailers

Index:

FTSE Small Cap

236.50p
   
  • Change Today:
      8.50p
  • 52 Week High: 245.00
  • 52 Week Low: 51.85
  • Currency: UK Pounds
  • Shares Issued: 199.12m
  • Volume: 509,989
  • Market Cap: £470.91m
  • RiskGrade: 354

Liberum ups price target on 'far too cheap' Halfords

By Sean Farrell

Date: Friday 11 Sep 2020

LONDON (ShareCast) - (Sharecast News) - Investors' tepid response to Halfords' positive trading misses how the company is improving, Liberum said as it increased its share price target for the company.
Halfords' recent trading update was "very encouraging" and showed the company capitalising on current trends and improving the fundamentals of its business, Liberum analyst Adam Tomlinson said. He kept his 'buy' rating on the shares, increased his forecasts and upgraded his price target to 300p from 250p.

The company reported booming sales of cycling goods and car roof boxes on 8 September after Britons got on bikes and holidayed in the UK during the Covid-19 crisis. The government is also supporting cycling to get people back to work without using public transport.

Tomlinson revised his estimate for annual earnings to forecast a £44m pretax profit. He had previously expected a £6.8m loss. He also upped his estimates for later years and said the 2022 price to earnings ratio of 8.2 times was "far too cheap given the momentum and opportunity ahead".

He said the bike and car parts company was making the most of market tailwinds and was also on track to improve returns by increasing sales of car servicing and bike-related services, helped by the government's Fix Your Bike Voucher scheme.

Halfords is also improving margins for cycle sales with better buying terms, component rationalisation and better promotion. The company's improved website is helping to drive online business, Tomlinson said.

"The muted share price reaction to the update overlooks just how successfully management is repositioning the group," Tomlinson wrote in a note to clients. "Not only is this allowing the group to capitalise on the current market tailwinds, but importantly it continues to evolve the business towards a more service-led, higher margin, higher returns model, with a greater emphasis on motoring and a more profitable cycling category."

Halfords shares rose 4.9% to 191.80p at 12:47 BST.







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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.

 

Halfords Group Market Data

Currency UK Pounds
Share Price 236.50p
Change Today 8.50p
% Change 3.73 %
52 Week High 245.00
52 Week Low 51.85
Volume 509,989
Shares Issued 199.12m
Market Cap £470.91m
RiskGrade 354

Halfords Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
66.55% above the market average66.55% above the market average66.55% above the market average66.55% above the market average66.55% above the market average
34.69% above the sector average34.69% above the sector average34.69% above the sector average34.69% above the sector average34.69% above the sector average
Price Trend
64.11% above the market average64.11% above the market average64.11% above the market average64.11% above the market average64.11% above the market average
75.51% above the sector average75.51% above the sector average75.51% above the sector average75.51% above the sector average75.51% above the sector average
Income
34.85% below the market average34.85% below the market average34.85% below the market average34.85% below the market average34.85% below the market average
16.13% below the sector average16.13% below the sector average16.13% below the sector average16.13% below the sector average16.13% below the sector average
Growth
86.99% below the market average86.99% below the market average86.99% below the market average86.99% below the market average86.99% below the market average
59.18% below the sector average59.18% below the sector average59.18% below the sector average59.18% below the sector average59.18% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Halfords Group Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Dec-19 25-Jul-19
Paid 17-Jan-20 30-Aug-19
Amount 6.18p 12.39p

Trades for 29-Oct-2020

Time Volume / Share Price
16:35 55,583 @ 236.50p
16:29 662 @ 236.50p
16:29 13 @ 237.50p
16:29 11 @ 237.50p
16:29 20 @ 237.50p

Halfords Group Key Personnel

CEO Graham Stapleton
CFO Loraine Woodhouse

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