RBC Capital Markets upgraded Superdry to ‘outperform’ from ‘sector perform’ on Thursday, lifting the price target to 425p from 390p as it highlighted an undemanding valuation.
“We think that Superdry is progressing well in its brand reset, with an improved product range and a widening demographic appeal,” RBC said.
“We note that the shares have come in circa 25% over the last three months and, on circa 11x CY22E price-to-earnings, Superdry is now trading at a significant discount to its own history and premium apparel peers.”
RBC said this represents an attractive entry point to a company with an improving top-line performance and margin expansion to come.
At 1030 GMT, the shares were up 5.3% at 279p.
