Hennes & Mauritz (H&M) rose to its highest price in 11 months in Stockholm trading after announcing news of its first store in South Africa and as Barclays upgraded its rating.
H&M, Europe’s second-biggest clothing retailer, gained as much as 1.5 percent to 247 krona (R394), its highest price since September last year, in morning trade in Stockholm.
The Swedish company said yesterday that it had signed a contract for a full-concept flagship store that would open in South Africa in 2015 at the earliest, its first in sub-Saharan Africa.
“We see great potential for further expansion in this region,” chief executive Karl-Johan Persson said in the statement.
Barclays raised its rating on H&M shares to overweight from equal weight yesterday, saying: “Investors underestimate H&M’s potential to offer sustainable long-term outperformance in sales growth.”
The bank’s analysis indicated that H&M would accelerate sales growth next year and would probably outpace rival Inditex, owner of the Zara chain, in the coming decade, Christodoulos Chaviaras, an analyst at Barclays in London, wrote. – Bloomberg