Analysts at Berenberg raised their target price on food manufacturer Hotel Chocolat Group from 390.0p to 430.0p on Friday, citing “significant retail growth”.
Berenberg said Hotel Chocolat had delivered an impressive set of full-year results earlier in the week, driven by continued strength in its digital, subscription and wholesale channels.
The German bank also noted that Hotel Chocolat had reported that UK stores had performed “well” and contributed to growth since re-opening in April, with sales up roughly 22% year-on-year despite almost six months of store closures.
“Given that one of our key concerns is the cannibalisation of sales between channels ‘post-pandemic’, we are encouraged by this momentum and raise our estimates and price target accordingly,” said Berenberg, which reiterated its ‘hold’ rating on the stock.
“We expect a strengthening digital retail channel (online and subscriptions) to drive considerable revenue growth for Hotel Chocolat over the coming years. Meanwhile, initiatives in existing stores should also drive physical retail lfl sales.”
