Ted Baker share price: what’s the latest ahead of its trading update next week?
The struggling fashion retailer will release its latest trading update next week, with the company revealing a £58 million hole in its accounts on Wednesday that sent its shares tumbling.
Ted Baker is set to release a trading update next week, with the company revealing a £58 million hole in its accounts on Wednesday that sent its shares tumbling as much as 8% in early morning trading.
The struggling fashion retailer hired accountancy firm Deloitte in December to carry out an audit after the company found that it had overestimated the value of its stock.
At first, Ted Baker believed it has overestimated it stock value between £20 million and £25 million, only for that figure to more than double, sending its shares tumbling as low as 290p on Wednesday.
A £58 million overstatement would be larger than the company’s annual pre-tax profits for the year to 31 January 2019 which came in at £50.9m.
Ted Baker is trading at 298p a share as of 11:05 (GMT) on Wednesday.
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RBC Capital Markets downgrades Ted Baker, upgrades Superdry
Last week, analysts from RBC Capital Markets downgraded their rating for Ted Baker from ‘sector performer’ to ‘underperform’ and lowered their price target for the stock from 440p to 300p.
The investment bank opted to take a more caution view of Ted Baker’s 2020 outlook after the company issued a profit warning in December, with it likely to take an even dimmer view of the stock considering its recent balance sheet error.
RBC Capital Markets are, however, upbeat about fellow fashion retailer Superdry, upgrading its rating to ‘outperform’ and lifting its price target for the stock from 490p to 500p.
Superdry’s upgrade was given ‘in anticipation of better brand positioning and product offer from Autumn/Winter20’, according RBC Capital Markets in a note to investors.
Superdry is trading at 423p a share as of 11:05 (GMT) on Wednesday.
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