SuperGroup is back in fashion with City

How can a City analyst predict the fickle world of young fashion and how long will Superdry, Hollister and Abercrombie & Fitch remain on the shopping list of the worlds' teens and twenty-somethings?

City scribblers don't claim to know the answer but they do think Superdry owner SuperGroup has turned a corner and it could be worth buying the shares.

Following an analysts' meeting with management, Peel Hunt's John Stevenson said it is "regaining control" following "a plague of self-inflicted profit warnings in the past 12 months".

He said that although there is still a lot to be done, "infrastructure, system and process improvements reduce the short-term forecast risk".

He gives the shares a hold target, up from sell, and upgraded his share price target to 650p from 300p.

Seymour Pierce's retail experts were also positive, and gave the shares a buy rating with a share price target of 750p.

Meanwhile, scribes at Canaccord Genuity were even keener, giving it a buy rating with a 850p share price target.

Canaccord's Wayne Brown said: "Supergroup has delivered two consecutive quarters of decent growth and we feel reassuring updates for the remainder of the year will not only be a theme for 2013 but will transform the appeal of the shares."

SuperGroup's shares leapt 12p to 672p.

Staying on the retail theme, could it be time to throw away the Argos catalogue?

At least one City analyst thinks so. Panmure Gordon's Philip Dorgan reckons punters should sell out ahead of Home Retail Group's results later this month, saying that the Argos and Homebase owner's competitors are "big and ugly".

"Amazon is close to or larger than M&S in non-food in the UK and, together with eBay, has customer approval ratings that Argos can only dream of," he said. "John Lewis' online sales are booming."

He thinks Home Retail will report "another big fall in interim profits."

Panmure gave it a share price target of 51p. Despite the downbeat note, Home Retail's shares gained 1.4p to 98.65p.

Now for something a little more upmarket than the queuing system at your local Argos store.

Investors in luxury goods brands are waiting to see what Burberry's second-quarter trading update will reveal today. Kate Calvert at Seymour Pierce has previously given it a hold rating and a target price of 1,200p.

Last month it put out an unscheduled trading update for the 10 weeks to 8 September after a "material slowdown" in global sales. The company's shares have fallen 26 per cent since then and edged down 13p to 1,003p yesterday.

But analysts at Nomura are confident of growth for the luxury sector in general. In a note on Paris-based Gucci owner PPR Group and Louis Vuitton owner LVMH, Nomura's Christopher Walker said: "Although GDP consensus forecasts for quarter three have been falling, a number of data points are beginning to stabilise or improve in China, giving us increasing confidence about the outlook for luxury goods into 2013."

PPR, which confirmed plans to spin off its Fnac business, saw its shares rise 3.1 cents to €128.20.

The FTSE 100 fell for the third day, but banking stocks beat the benchmark index with Lloyds up 1.48p to 38.5p, and Royal Bank of Scotland gaining 5.4p to 262.7p, leading the way. Reiteration by the Financial Services Authority that it will loosen capital rules for banks helped financial stocks.

But the blue-chip index lost 33.54 points to 5,776.71, falling below the 5,800 barrier that some traders use as a key marker of sentiment. The eurozone debt crisis was at the forefront of investors' minds yet again and mining stocks and engineering companies were big losers. One exception was miner Anglo American, which got a boost from analysts at Sandford C. Berstein who reiterated their "outperform" rating. It edged up 12p to 1,825.5p.

BAE Systems' shares ended on a downward trajectory, down 4.5p to 320.9p as its planned merger with EADS crashed and burned.

Rumours bubbled up again for water group United Utilities and its shares flooded up 11.5p to 729p. Traders reheated rumours that Chinese sovereign wealth could be eyeing it.

Suggested Topics
Alexis Sanchez has completed a £35m move to Arsenal, the club have confirmed
sportGunners complete £35m signing of Barcelona forward
Poor teachers should be fearful of not getting pay rises or losing their job if they fail to perform, Steve Fairclough, headteacher of Abbotsholme School, suggested
voicesChris Sloggett explains why it has become an impossible career path
world cup 2014
Popes current and former won't be watching the football together
Wayne’s estate faces a claim for alleged copyright breaches
newsJohn Wayne's heirs duke it out with university over use of the late film star's nickname
Arts and Entertainment
Celebrated children’s author Allan Ahlberg, best known for Each Peach Pear Plum
peopleIndian actress known as the 'Grand Old Lady of Bollywood' was 102
Mick Jagger performing at Glastonbury
ebookA unique anthology of reporting and analysis of a crucial period of history
Germany's Andre Greipel crosses the finish line to win the sixth stage of the Tour de France cycling race over 194 kilometers (120.5 miles) with start in Arras and finish in Reims, France
tour de franceGerman champion achieves sixth Tour stage win in Reims
Life and Style
beautyBelgian fan lands L'Oreal campaign after being spotted at World Cup
Arts and Entertainment
Chocolat author Joanne Harris has spoken about the financial struggles most authors face
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Business Analyst Consultant (Financial Services)

£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...

Systems Administrator - Linux / Unix / Windows / TCP/IP / SAN

£60000 per annum: Harrington Starr: A leading provider in investment managemen...

AVS, JVS Openlink Endur Developer

£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...

Technical Support Analyst (C++, Windows, Linux, Perl, Graduate)

£30000 per annum: Harrington Starr: A global leader in trading platforms and e...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice
Hollywood targets Asian audiences as US films enjoy record-breaking run at Chinese box office

Hollywood targets Asian audiences

The world's second biggest movie market is fast becoming the Hollywood studios' most crucial
Grindr founder Joel Simkhai: 'I've found love on my dating app - and my mum keeps trying to hook me up!'

Grindr founder Joel Simkhai: 'I've found love on my dating app'

Five years on from its launch and Grindr is the world's most popular dating app for gay men. Its founder Joel Simkhai answers his critics, describes his isolation as a child