Broker snap: Games Workshop expanding again

27th Jul 2010 13:24

After sorting out its cost base in the year just gone the challenge now for miniature war games retailer Games Workshop is to grow like for like (LFL) sales, KBC Peel Hunt asserts.LFL sales growth "would have a significant impact on the bottom line given the operational gearing," KBC analyst Charles Hall believes.The company has increased its earnings per share (EPS) forecast for fiscal 2011 from 35.6p to 38.3p as a result of a lower anticipated tax charge, and has bumped up its price target from 440p to 500p.The broker is impressed by the company returning to dividend payments with a bang in the form of a 25p pay-out but with the company committed to paying surplus capital to shareholders there is every chance of bigger payments ahead, with the broker forecasting next year's divi will rise to 35p.