Financial Trading Blog
Stock of the day 18/03/2015 – Ted Baker PLC
After a middling 12 months on the markets saw Ted Baker start 2014 at £22.76 and end at £21.89, the company started 2015 at £21.92. A brief wobble on the New Year’s first day of trading saw the stock hit £21.76, but since then Ted Baker has been making some impressive progress up the charts. On Tuesday of this week the company reached an all-time intraday high of £28.06, and is now trading at £21.76.
This record-setting price is unsurprising given the fact that analysts are forecasting a similarly record-breaking profits statement come Thursday. Ted Baker are expected to announce pre-tax profits of £48.6 million for the financial year ending in January compared to the £38.9 million in the same period the previous year. Ted Baker’s figures are bolstered by an astonishing holiday season that saw a 22.8% increase in sales.
There has been a lot of positive buzz around Ted Baker of late. The recent opening of stores in Abu Dhabi and Saudi Arabia due to increasing demand marks an entry into new, and lucrative, territory, whilst receiving a Partner in Excellence award from US fashion retail giant Nordstrom reflects how cemented the brand has become in America.
The company is also making moves elsewhere. It is soon to release its own brand of crockery; something that could lead to more steps in the homeware department, akin to something like Next’s homeware expansion. And through founder, CEO and largest shareholder Ray Kelvin’s latest luxury apartment development, Ted Baker is set to become linked with interior design, with these units coming with a ‘Styled by Ted Baker’ tag.
The combination of its growth on the markets, the likelihood of record profits and the general glow coming off of Ted Baker has led analysts to give the stock an average rating of ‘buy’, but with a consensus 12 month target of £23.57, around £4 lower than its current trading price.
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