Having outperformed materially in the period from November to April, Halfords has fallen 15% in the last 3 months. Over the next week there is a risk it could fall further if it drops out of the FTSE250. However, valuation is approaching 9x P/E (6% yield) and it has capacity in FY18 for a buyback/special dividend of up to £50m (8% return). While wider UK spending has softened, we expect Halfords’ trading update in 2 weeks to be solid (e.g. c+3% LFL) as strategic self-help combines with ‘staycati ....
21 Aug 2017
N+1 Singer - Halfords Group - Positive view on stock re-iterated ahead of update
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N+1 Singer - Halfords Group - Positive view on stock re-iterated ahead of update
Halfords Group Plc (HFD:LON) | 162 1.5 0.6% | Mkt Cap: 354.7m
- Published:
21 Aug 2017 -
Author:
Matthew McEachran -
Pages:
5
Having outperformed materially in the period from November to April, Halfords has fallen 15% in the last 3 months. Over the next week there is a risk it could fall further if it drops out of the FTSE250. However, valuation is approaching 9x P/E (6% yield) and it has capacity in FY18 for a buyback/special dividend of up to £50m (8% return). While wider UK spending has softened, we expect Halfords’ trading update in 2 weeks to be solid (e.g. c+3% LFL) as strategic self-help combines with ‘staycati ....