Next: Berenberg upgrades to 'hold'

(CercleFinance.com) - Berenberg has upgraded British clothing retailer Next to "hold" from "sell," while retaining a price target of 4,100 pence on the stock.


In a note to clients, the German acknowledges that the year ahead is "difficult to predict," with downside risk from Brexit uncertainty and the shift of sales online, but also upside risk following an "annus horribilis" for UK retail.

As such, Berenberg thinks Next's guidance of a slight decline in profit is "reasonable."

"In the near term, we believe Next's third-party products business will continue to benefit from the demise of department stores," it writes in the note.

Next shares are currently up 0.9% at 4,391 pence in London.

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