Barclays’ coverage of Jimmy Choo lifts the stock

Tuesday, 07 July 2015

Shares in Jimmy Choo rose earlier this week right after Barclays initiated coverage with an 'overweight' recommendation and a price target of 208 pence on the shares. The bank expects stronger growth for the designer shoemaker than for its sector peers.

"We see the brand as well positioned with a sub-3 percent market share in the shoe category, one of the fastest growing and most fragmented luxury segments with a substantial amount of white space," summed up the broker about their position on the stock.

In the same vein, Barclays has predicted earnings per share would grow at an average pace of 14 percent over the next five years thanks to store openings with like-for-like growth reaching between 4 and 5 percent per year.

Looking ahead, by 2020, the shoe retailer was also expected to boost its margins on an earnings before interest, taxes, depreciation, and amortization basis from 16.8 percent to 20.8 percent.

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