Maternity specialist Mothercare’s shares were up after last week’s second-quarter and first-half update.
In the latest period, UK like-for-likes fell 3.2% but international retail turnover was up 14.2% and overseas store openings are being accelerated.
UBS upgraded the retailer from neutral to buy and said: “Mothercare has successfully repositioned to thrive in the tighter retail environment, and with like-for-like sales comps softening in the second half and turning negative in the fourth quarter, we believe further downside risk to forecasts is low.”
Seymour Pierce advises hold and said: “Mothercare is one of the longer-term growth stories in our coverage, driven by its international franchise business. However, we remain concerned over the strength of its UK business.”
KBC Peel Hunt also considers Mothercare a hold.