Liberum upgraded Jimmy Choo to ‘buy’ from ‘hold’ with an unchanged target price of 135p after the company’s trading update.
It said the update suggests Choo is showing resilience in a difficult market.
Shares in the luxury goods maker shot higher on Wednesday after it said it had made a good start to the year, with trading in line with expectations despite the headwinds facing the sector.
Liberum said the update was timely as the stock has been hit by wider concerns about the luxury market, with peers such as Burberry, Ralph Lauren and Hugo Boss also taking a hit.
It said, “LFL sales amongst the peers have been down mid-single digit in recent reporting. It is therefore welcome that management has provided comfort that the company is on track to meet full year forecasts”.
“The shares have been driven lower, we believe, by a combination of concerns over the wider luxury goods market malaise and fears over a possible Brexit which has impacted most of the UK market. In our view the Q1 statement should be sufficient to show that a strong brand with a flexible business model can continue to thrive.”