Broker snap: High hopes for Halfords

8th Jan 2010 09:59

Credit Suisse keeps Halfords as 'outperform', but has increased its 2009/10 profit forecast, while the price target goes up to 460p from 440p.The broker expects pre-Christmas sales to come through much stronger than previously expected and has increased its 2009/10 pre-tax profit estimate by 7% to £112m ahead of the next trading update on 14 January."HFD trades on a PE of 10.9x March 10E and 10.3x March 11E. This still looks cheap to us particularly given its improving balance sheet, strong management and the fact that we are still forecasting 6% EPS growth per annum through March 2011 and 2012," CS concludes.