French Connection struck a confident note in an update last week when it reported UK like-for-like growth, increased year-on-year demand for its winter wholesale collections and that first-half profit would meet expectations.
Seymour Pierce rates French Connection a buy and pointed out its low valuation relative to peers such as Ted Baker.
The broker reckoned French Connectionās share price weakness is unwarranted and stuck to its top-end full-year forecast of Ā£10m.
Seymour Pierce analyst Kate Calvert said: āAfter the reorganisation programme that involved the disposal of loss-making Nicole Farhi and loss-making stores in the US, management can focus on improving returns of its FCUK brand.
āThis approach together with the signing of a licensing deal with Sears US has helped to improve earnings visibility and momentum.ā
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