The overall market perception of ted baker has been on the same lines. Where all the leading analyst community share similar viewpoints. Ted baker’s share prices over the years have risen and have stayed as one of the market leader in its segment. The company has been public for 14 years and has always hit the numbers (Telegraph, 2012). The company over performed by 2% in positive over the analyst prediction in 2012 where a slowdown predicted because of poor weather. Analysts at Singer pointed that because of snow disruption, the comparatives were soft but according to them, the retailer still exceeded expatiations on sales growth.
This reflects brand strength and appeal to the increasing global audience. Shares in Ted Baker rose from 7pc from last year to 5pc to 734p. While the analyst community criticized the competitions like Tesco, Ted Baker on the other hand sought appreciation from analyst over the quality and number of staffing. Ted baker recent overseas expansion strategy has also won the support of analysts at Espirito Santa, which raised its target shares prices from 785p to 810p.
Espirito Santa also supported and backed the retailer investing in expanding its foreign business. (Financial Times, 2012).According to analyst, the next two years would be the time to lay down investment for future international growth. The infrastructure is being put down in the Uk for support functions and then into new markets such as China, Japan to open new stores. Analyst community expect Ted baker as always to test markets carefully and build their brand presence and do not doubt the presence and growth of the brand.
In the recent, the analysts at Goldman Sachs have been so head over heels with Ted Baker that they equated it to luxury brand instead to its high street competition, in terms of valuation.Goldman Sachs restated its rating, increased its target share price to 1,241p from 1,083p. Where a growth of 13% and 11% sales growth is expected, for upcoming two years. (The Independent, 2012) In addition, the analysts at Panmure Gordon shared a similar keenness where they appreciated the distribution chain, opportunities in licencing, management strengths and strong net cash balance sheet. They rated Ted Baker with a target share price of 975p.
(The Independent, 2012)
