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Halfords offers 50% upside if investors come round to “clear, structural tailwinds” – broker

Halfords Group PLC (LON:NFD) are not getting the love they deserve, analysts at Peel Hunt reckon, suggesting the shares have around 50% upside from current levels.

“Everyone knows”, analysts Jonathan Pritchard and John Stevenson said, that this year the leisure sector has been all about cycling and staycations.

“The big question is why investors do not believe that the clear, structural tailwinds actually change HFDs earnings power, short or long term.

“They do,” the pair insisted, arguing that this cycling boom “will be more sustained than others before it” as Downing Street and many local cities bring in measures to encourage cycle use.

Halfords is also starting to “look much better to customers”, helped by joined-up across silos, booming more “digitally credible” and using customer-relationship management more effectively.

In July, the retailer said the second half of the year will see better profits and modelled three scenarios: the first will see an underlying loss before tax of £0-10mln, the second £0-10mln andRead More – Source