Broker Singer Capital Markets has upgraded Blacks Leisure on the assumption that the troubled retailer will successfully win additional funding.

Singer increased its target price from 47.5p to 70p, but expects the outdoor pursuits specialist to post a loss of £5m this year.

Blacks’ core business is profitable but its boardwear operations have dragged group performance down and the retailer is attempting to get out of that market. Blacks is in discussions at present to secure finances and its existing £35m borrowing facility has been extended until August while discussions are held.

Singer analyst Matthew McEachran said: “While cash to eliminate boardwear losses would clearly be helpful, increasing the pace of change in outdoor would also yield significant benefits, particularly as investment could be focused on a relatively small number of outlets, which generate the lion’s share of sales and profits.”

He said: “The availability of additional funding could rapidly transform the group’s earnings trajectory and any such announcement would clearly be a positive catalyst for
the shares.”