Broker snap: Solid year for N Brown

10th May 2011 12:32

Solid final results from internet and catalogue home shopping company N Brown have led Peel Hunt to raise its target price from 300p to 340p.A 5% year-on-year increase in pre-tax profit to £98.2m was £0.5m ahead of the broker's forecast, "driven by acquisition, organic growth and carrying international investment," said analyst John Stevenson.Additionally, the group reported a current sales growth of 4.8% with flat gross margins. However, management flagged a risk to product margin from inflation and a potential markdown of around 50 basis points year-on-year.Nevertheless, "we reiterate our 'buy' stance and raise out target price...reflecting the continued long term earnings per share growth N Brown continues to deliver," said Stevenson.---BC